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■**44601 


' ■ ■ / 
No. 28,773 


Friday May 14 1982 






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Left-wing Gold off 

$3.35 


triumph 
In union 
elections 






LcCi wingers .in the Civi! and 

Public Service Association 
scored a sweeping victory in 
union elections. 

There was a landslide nice- 
lion of a i*?ft-dnminKleri execu- 
tive committee and Mr Kevin 
Bond;', a hard-ifa* .stipporti*.- 
Ihe Labour Party's ?!i!iiant 
rendemr,-, was elected 
president. 

The voting now throws into 
doubt recent • . s^reeraenl' 
between the fiovomracni and 
thr largest Civil Service union. 

The Fir?* -Division Associa- 
tion. represen* ire; 3,onu top 
civil scrvaals hi-.i b.ir];cd rhe 
HJCs camnoicn against -the 
Employment Bill. Back Page 

Diplomats go 

The U.S. has ordered two Polish 
diplomats to leave ‘the country 
■n retaliation for the expulsion 
>f two Antei'icim diplomats on 
.’haw; of spying, the Slate 
Department said. 

Pope attack 

.lunn Fernand*? Krahn will face 
Lisbon magistrate* today in con- 
nection with an attack oa the 
Pope at the Shrine of Fatima. 

Bullet go-ahead 

Security forces in Northern 
Ireland will continue to use 
plastic bullets, in spite cf a vote 
in the European Parliament to 
ban them. Page 2 

Passengers die 

Thirteen people were killed and 
24 injured when a crowded bus 
overturned and plunged 00 ft 
into a ravine, near Mexico City. 

Iran executions 

Seven people have - been 
executed and eight given, long 
prison terms in Shim, Iran, for 
their part in the assassination 
of a leading clergyman, in 
December. Gulf states to meet. 
Page 4 

Mato caiS 

The UJ5. Senate has called on 
President c Ragan To launch an 
initiative To revitalise Nato, at 
the organisation’s summit meet- 
ing in Bonn. n?*t month. 

Hostage talks 

BRAZILIAN diplomats are due 
to arrive in Guatemala today, 
to try to negotiate the release 
of eight hostages held in their 
embassy by armed leftists. 
Page 5 

Killer jailed 

Tony Hobson, 27, described as a 
ruthless tiller by the judge was 
jailed for at least SO years at 
Durham Crown Court, for 
murdering three men who 
“crossed the Hell's Angels.” 

Space launch 

■' * The Soviet IJDion launched a 
. Sovuz T-5 two-nun spacecraft 

..rill Jai-I- unth lie nrWUnP 

•naif- 


in NY; 
$ rises 


• STERLING fell 1.45 rents to 
close in London at B1.B21 . It 
fell to DM 4.19 (DM 4.19S). 
FFr 10.98.1 iFFr 10.94). but 
rose to SwFr 3.5375 (SwFr 
3-53.1) and was unchanged at 
Y429.5. Its trade-weighted index 
was unchanged at 90.4. Page 3S 

• DOLLAR rose in London to 
DM 2.2955 fDH 2-2*05), FFr 
3.9925 (FFr 5.9525), SwFr 1.939 
(SwFr L922S) and V23&23 
(Y233.5). Its trade-weighted 



DOLLAR 

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which will dock with its ortHting 
space station Salyut 7, Tass 
reported. 

BCal wins route 

British Caledonian has wan 
its battle to fly scheduled pas- 
senger services between Gatwiek 
and' Los Angeles— the route left 
vacant hy Laker Airways' 
collapse. Page 9 

False readings 

Uo to 4b per. .cent of former 
company cars may have had 
their roilometei’s turned hack 
before reaching now owners, 
said the Automobile .Associa- 
tion’s Drive magazine. Page S 

Aircraft crashes 

An RAF Hunter jet crashed in 
hills south of Aberystwyth. 
The pilot ejected and suffered 
ooly minor injuries. 

Briefly - 

Spanish football stadium 
employees are threatening to 
strike during next month’s 
.World Cup finals. 

Gang Show founder Ralph 
Reader died in London, aged 78. 


index was 112.4 (111.8). A 
firmer trend - in Eurodollar 
rates -helped support the doDar 
throughout the day. Page 38 

• GOLD fell 90.125 in London 
to dose ai 5332.125. In New 
York the Comes Slay dose was 
$331.6 ($334.95). Page 38 

• EQUITIES: the FT 30-share 
index fed 5.7 to 5832 in dud 
trading. Page 37 

^ GILTS: the Government 
Securities Index lost 0.2 to 
69.2L Page 37 . 

• WALL STREET was . 6.75 
down at 859.02 hear the dose. 
Page 36 

• CERTIFICATES of lax 

deposit rale of interest has been 
cut to 13.25 per cent from 13.5 . 
per cent. - - . . 

• INDIA awarded a £90m lele- 
communications coniraot to C1T 
Alcatel of France in. a major 
setback for Britain’s System X 
consortium. Page 6 

• BRITISH and U.S. companies 
will be able to draw on cheap 
credits from Japan to finance 
exports to third countries. Back 
Page 

0 COMPUTERS ORDER wrth 
millions of pounds for the 
Driver Vehicle Licensing Centre 
is cxpecied lo be put to open 
tender by the Government. 
Bad; Page 

• NORTH SEA drilling conces- 
sions will be auctioned as part 
of a plan to be announced by 
the Government. Back Page 

COMPANIES 

• PHILIPS, thp Dutch electrical 
group, increased trading profits 
by 10 per cent in the first 
quarter to FI 591m ($233m). 

Pas® 23 

O BRANHT INTERNA- 
TIONAL, the airline. is 
suspending operations and filing 
for protection under the U.S. 
bankruptcy laws. Back Page 

• TOOTAL, one of the four big 
British l exfile companies, is to 
transfer its thread-making head- 
quarters from Manchester to the 
U.S. Page S 

• FORMER CHAIRMAN of 
commodity brokers Gill and 
Duff us. Mr Thomas Aitken. who 
left the company in February, 
received a £119,000 pay rise last 
year. Page 26 

• ROBERT MAXWELL, the 
publishing entrepreneur, was 
involved in four business moves 
yesterday including an attempt 
to rescue former Labour MP 
Woodrow Wyatt’s printing com- 
pany from receivership. Pages 
26 and 27. 

0 ULTRAMAR, Ihe oil com- 
pany. improved taxable profits 
in the first quarter to £43.7m 
(£42m). Page 26, Lex, Back 
Page 


CHIEF PRICE CHANGES YESTERDAY 



re In pence unless otherwise 
RISES 

\ 260 + 8 

Intnl T JO 

nan Bros ... 16-+ 2 

orth Ceramic 104 + 4 

m 60 t f 

V Stores ... .17 + 3 

mbe Marshall 235+25 

it TV A 71 + 9 

■ Breweries 14S + 10 

FALLS 

340 18 

prs Stores ... 27-5 

lys Bank S2 ” ?« 

v Rand S4S — IS 

i Aerospace .. 209.— 7 

ijf 52 ‘ 5 

Patous — — .67-3 


indicated) 

Costain 254 w - 6 

Dalgety 295 - 15 

Dowty 128 — 4 

Glaxo 667 — 7 

Greater-mans A ... 230 — 40 

Hawker Siddeiey ... 332 - 6 

Ladbroke 154-6 

plessey ...422 1 6 

Rothmans 98 — 3 

gp 314 «— 4 

Eurroah Oil 140 s- 5 

Tricentrol 212 ■— S 

Ultramar 438 - 2- 

MZltf HIdgS JS7 - 13 

Oakbridge SO - o 

Peko-Wallsend ... 270 - 10 

Western Mining ... 218 - 19 


Tory backbenchers 
pressure Government 
over Falklands talks 


BY PETER RIDDELL. POLITICAL EDITOR 


THE GOVERNMENT faces an 
increasingly delicate political 
balance in trying to retain 
maximum flexibility in negotia- 
tions over the FalkJtinds crisis 
at the United Nations in New 
York, while reassuring its 
supporters that no fundamental 
principles have been com- 
promised. 

The signs last night were That 
a sizable group of Tory MPs 
remained uneasy about the 
course of negotiations and were 
critical of the concessions under 
discussion — which were offered 
in (he UiL/Peruvian initiative 
last week. 

The talks are at an ’* im- 
portant and delicate stage." said 


Falklands Crisis, Page 4 
Heath scorn for sell-put fears 
angers Tory' right. Page 12 
Politics Today, Page 24 


stuck on the question of an 
interim administration for the 
islands, as wetl as on the central' 
issue of sovereignty. 

Mr pyro yesterday indicated 
that Britain was prepared to 
be flexible in discussing 
sovereignty in future negotia- 
tions and in recognising that 
third parties, possibly including 
the UN, as wrll as local inhabi- 
tants. could lie involved in the 
interim administration. He 
sought Hi distinguish these 
points from those regarded as 
British fundamental require- 
ments. as both he and Mrs. 
Tli nlcher attempted to reassure 
their backbenchers. 

The Prime Minister said she 
was working for "a peaceful 
solution, not a peaceful sell-out." 
She stressed that Britain wanted 


Ute withdrawal of all Argentine 
military ami civil personnel 
within a specified lime and in 
a verified manner ar.tJ insisted 
on mi prior conditions or under- 
standings by Argentina about 
the long-term sovereignty of the 
islands. 

She said these points could 
never be forgone and empha- 
sised that “ nu military options 
could he slopped by the negotia- 
tions and iT there was not a 
settlement the Government hail 
the power to act." 

Mr Pyro made .similar points. 
Though some MPs defected more 
ambiguity in his speech. He 
clearly failed to satisfy the 
doubters and there were appar- 
ently strung warnings from half 
a duzen speakers .at a private 
Continued on Back Page 


Talks continue at UN 


Ifr Francis Pym. Foreign Secre- 
tary*. yesterday, when he opened 
the fifth Commons emergency 
debate on the crisis. He said 
that on Tuesday "those talks 
seemed to make a little pro- 
gress. On Wednesday, things 
went less well. Hopes had been 
raised before, only lo be dashed, 
and many very* serious diflicui- 
tiek remain.” 

The discussions appear lo be 


The efforts of Sr Javier 
Perez de .Cuellar, the United 
Nations Secretary-General, to 
end the fighting over the 
Falkland Islands conh'nucd 
for the sixth consecuthe- day 
yesterday. Sir Anthony 
Parsons, the chief British 
delegate at the UN, snid 
after consultation with Sr 
Perez de Cuellar that he had 
“ very serious a ad profound 


discussion w4fh the Scrrcary 
General ou some important 
issues. We arc still in 
business." Earlier, he said he 
was bringing fresh instruc- 
tions from his Government. 

Security Council members 
are to hold closed-door con- 
sultations today on seieral 
topics, including the Fa!k- 
iands crisis. 


Aircraft carriers were 
target for Argentine jets 


BY BRIDGET BLOOM, DEFENCE ■CORRESPONDENT 


THE- military engagement in 
the South Atlantic on Wednes- 
day in which British missiles 
shot down two. Argentine air- 
craft, was much bigger and 
potentially graver than either 
side admitted, it emerged 
yesterday. ■ 

Reports of the action are far 
from complete and are con- 
tested, but it would appear that 
at least a dozen Argentine 
fighter bombers launched a 
phased attack on a group of 
British warships which were 
almost certainly guarding the 
Two aircraft carriers with the 
naval task force. 

It now appears that, in addi- 
tion lo the two Argentine Sky- 
hawk aircraft shot down by 
British Sea' Wolf missiles, one 
of the British warships was 
damaged. 

The Defence Ministry in 
London yesterday confirmed the 
damage, which it described with- 
out any further detail as “ com- 
paratively minor.” There were 
no British casualties, it said. 

The Ministry statement came 
after Argentina admitted the 
loss of its two fighters and 
claimed it had inflicted serious 


damage to two British frigates. 

The Ministry statement con- 
firmed that the attack, originally 
announced on Wednesday* as 
involving two British ships and 
three Argentine aircraft, had 
occurred at 5.30 pm London time 
on Wednesday . 

However. yesterday the 
Ministry said the Argentine Sky- 
hawks had " approached in three 
waves." In the first “ there were 
four aircraft, two of which were 

FALKLANDS WEATHER: 
Wind NW, Force 6 (25 knots) 
with 10 f( seas. Visibility fair, 
with intermittent rain. Tem- 
perature iow*-40s F. Gut look: 
Storm .system moving in from 
West. Cloud and rain. Wind 
W, Force 7 (30 knots). 

shot down. A third aircraft 
flew into the sea while taking 
evasive ad ion and the fourth air- 
craft escaped." 

No further aircraft were shot 
down, it said, but “ while engag- 
ing the second group; which 
also contained four aircraft, one 
of Her Majesty’s ships sustained 
comparatively minor damage. *‘It 
concluded: " The third group of 
Skyhawks subsequently gathered 


some distance from our ships 
but ditl not approach for an 
attack." 

* .The-- ministry spokesman 
denied reports that a British 
ship had been sunk or that a 
frigate as reported on London 
Broadcasting commercial radio 
yesterday, had been holed by a 
torpedo. 

Several serious question', re- 
main. notably about the role 
of the two frigates which 
were apparently involved. 

The ships have nor been 
identified by the Ministry, 
except as carrying the Sea 
Wolf missile system. The only 
warships on which This system 
is deployed are the Type 22 
Broadsword frigates, of which 
there are believed lo be only 
two with the task force. 

The prime role of these 
frigates is to provide close 
support for the critical elements 
of the task force, the two air- 
craft earners HMS Hermes and 
HMS Invtdhlc. For lack of 
further information from the 
Ministry, naval experts were 
assuming last nrght that rhe 
carriers were well — and danger- 
ously — within the sights of the 
Argentine aircraft. 


Cabinet 
meets on 
EEC 
budget 

By John Wyles, in Strasbourg 


MRS MARGARET THATCHER, 
the Prime Minister, is due to 
meet her senior cabinet 
colleagues today, to consider 
whether Britain should accept 
a one-year interim budgetary 
setrlemenr with the EEC. in 
advance of agreement on a 
longer-term arrangement. 

Mr Leo Tindemans, Eelgian 
president of the Community's 
Council cf Minisiers. am! M 
Gaston Thorn. President of ihe 
EEC Commisoion. have written 
to l.onnon appealing to the 
Briiian Government ' lo accept 
budgetary rebates for I9S2, on 
the understanding that a 
longer-term arrangement, last- 
ing "several years," would be 
negotiated by the end of this 
year. 

The British Government has 
been demanding immediate 
agreement on k medium-term 
arrangement and has been block- 
ing the adoption of higher EEC 
farm prices to exert pressure 
on its partners. 

The Tindemans-Thom letter 
talks t>: special rebate of 

E459m which eo»iM still leave 
Rritair. oa> ir.g around £5 30m to 
Brussels tiiis year. The letter 
implies that the British ought 
lo bear in mind that they have 
paid £530m Icsj to Brussels in 
1950-Si than was envisaged 
under the acreetnent in May 
1980 providing for temporary 
curbs on UK budget payments. 

But London is likely to insist 
on a rebate of around £625m 
which would reduce its net 19S2 
contributions by two thirds — 
the same proportions envisaged 
for 1980-1981 in the agreement 
two years ago. 

A 12-month deal would leave 
the British question open for 
yet a further bruising round of 
negotiations — much closer to 
a British election. 

Bur. in a surprising act of 
rebellion which has added to 
the pressure on Mrs Thatcher, 
Sir. Henry Plumb and a 
“ majority " of the 60 British 
Conservative!, in the European 
Parliament yesterday repu- 
diated her policy of refusing to 
aUow an increase in Csmtcunily 
farm prices until she has won a 
settlement of Britain’s EEC 
budge’ demands. 

Sir Henry justified his break 
with British Government policy 
by saying that ihe EEC had 
given strong backing to the 
Continued on Baek Page 

Editorial Comment, Page 24 


Barclays to open 
400 branches 
on Saturdays 

BY ALAN FRIEDMAN AND PAUL TAYLOR 


f 

Z in New York 


- May 12 

Previous 

1 

J Spot 1 5 1. 8370-8555 

*1.8350-8363 

! 1 month ‘0.29-0.55 pm 

0.30-0.35 pm 

1 3 months Q. 75 0.30 pm 

0.70-0.75 pm 

1 12 months 2.05 ^2.15 pm 

1.95 2.05 pm 


BARCLAYS BANK is io open 
400 of its full branches — about 
one in five — on Saturday morn- 
ings from the autumn. The 
move, which reverses a decision 
taken 13 years ago by all the 
London clearing banks, is 
designed to challenge Britain’s 
building societies and secure a 
larger Barclays share of privale- 
iii stonier deposits. The bank is 
already Britain’s largest in 
asset tern;.'. 

The branches will open from 
9.30 to noon, starling in Sep- 
tember. 

Barclays is confining the 
Saturday services lo private 
customers, which mean* it will 
open new accounts, cash 
cheques, accept deposits and 
sell foreign currency and 
travellers cheques. 

No other banks yesterday 
showed any sign of following 
the Barclay decision, but two 
announced other moves lo hit 
back further at competition 
from building societies. 

Lloyds announced it was 
moving into the estate agency 
business, the first British bank 
to do so, with the purchase of 
the six-office Charles Hawkins 
group in Norfolk. 

And National Westminster 
announced a further extension 
of its home loan scheme. 

The Barclays move which 
follows an announcement of 
sew customer account charges, 
earlier This week, may be 
opposed hy one or both of its 
unions, which represent 80 per 
cent of ihe bank’s staff. These 
were hostile yesterday, although 
nether rushed into immediate, 
outright opposition. 

Mr Eddie Gale, general secre- 
tarv of Barclays Group Staff 
Union, was “ outraged " hy the 
lack of prior consultation. Mr 
Leif Mills, general secretary of 
the Banking. Insurance and 
Finance Union, indicated that 
the proposals could prove un- 
acceptable. 

The unions were informed of 
the decision nnly on Wednesday 
afternoon. Mr John Quinton, 
senior general manager, said 
rhe staff reaction had been 
“ pretty relaxed." 

Employees would serve on a 
vohjMPrv basis for a fl?t pay- 
ment separate from their nor- 
mal wages. 

" Thev’II be delighted to have 
money in their hands.** he said. 
Barclays would recruit from 
outside its normal staff if there 
are not enough volunteers. Mr 
Quinton said the bank could 
also ask some of its pensioners 
to work on Saturdays. 

The -principal aim of the 
Saturday programme was to 
attract new deposit* and to com- 
pete head-nn with building 
societies. The societies had 
"grown fatter at our expense" 
according lo Mr Quinton. 


Barclays wished to re-establish' 
itself in "the business of attract- 
ing savings from the private 
customer." 

He felt the new openings 1 
would attract 100.000 more 
current accounts a year, com- 
pensating for the £5m a year ( 
additional costs involved. 

Both Midland Bank and 
National Westminster, which j 
has more branches than any of ! 
its rivals, said last night they 
had decided two years ago not 
io ooen on Saturdays because 
U was not likely to be profit- 
able. Mr Charles Green, a Nat- 
west general manager, said: 
“Franklv we doubt whether 
Barela vs will gain very* much 
more business off the street. 

The consensus among the , 
other banks was that they must 
wait to see how profitable the 
Barclays decision proved. 

Lloyds’ purchase of Charles.. 
Hawkins has been triggered by 
"the bank's desire lo offer a 
full package of financial ser- 
vices to house buyers." 

The bank has set up a sub- 
sidiary. Black Horse Agencies, 
and expects to announce other } 
acquisitions in the next few 
weeks. 

The major changes in 
National Westminster Bank's 
house purchase scheme are: 100 
per cent mortgages on pur- 


Why Barclays reversed 
major policy decision and 
union reaction. Page 8 
Barclays International 
eastern venture. Page 27 

chases up to £40,000 and 95 per 
cent mortgages up to a new 
maximum of £150.000 

The bank will also extend its 
re-mortgage scheme and in- 
crease the maximum period on 
a mortgage from 25 years to 30. 

Andrew Taylor adds: The 
Lloyds Bank announcement 
caught building societies totally 
off guard. They had expected 
that one of the clearing banks 
might opt for Saturday opening 
before long, hut the acquisition 
of an estate agent was com- 
pletely unexpected. 

Mr Richard Weir, secretary 
general of the Building 
Societies Association said: 
huilding societies were pre- 
cluded from acting as estate 
agents under the 1962 Building 
Societies Act. 

Building societies estimate 
that banks are currently taking 
about a third of all new 
mortgage business compared 
with about 40 per cent in the 
fourth quarter of last year. 

They have said that they will 
he concerned if the banks 
retain more than 20 per cent 
of new mortgage business in 
the long term. 


Trident wins two casino licences 


BY DUNCAN CAMM ELL-SMITH 

TRIDENT TELEVISION suc- 
ceeded yesterday in wiping the 
legal slate clean for <wo of the 
three London casinos it acquired 
from Playboy Enterprises last 
December. Tridenit's shares 
closed 9p up at 71p. 

South Westminster licensing 
justices took only a few minutes 
to renew the licence of .the 
Victoria Sporting Club earlier 
in. the day. But Trident’s 
counsel presented 14 witnesses 
and a host of arguments over 
several hours to support the new 
licence application for the Cler- 
mont Club that eventually 
succeeded. 

The Clermont plans to reopen 
fbe gaming facilities at its 
Berkeley Square premises n*xt 
Monday. 


Gaming at both the Clermont 
and The Playboy Club, Trident’s 
third London casino, were sus- 
pended on February 15 pending 
new licence hearings, and the 
Playboy application was turned 
down by the same bench last 
Monday. 

That move knocked 18tp off 
Trident's share price, which has 
risen as high as lOOp this year. 
It closed at 64p on Monday. 

Mr Gwyn Ward Thomas, 
Trident’s chairman, snid last 
night he was delighted by the 
Clermont and Victoria decisions. 
The two clubs would give 
Trident pro-lax profits on an 
historical basis of up tu £6m 
this year. 

But he said Trident was 


“totally mystified and per- 
plexed ” by the rejection of the 
Playboy application and would 
appeal against it. 

Yesterday's hearing on the 
Clermont was a markedly 
different affair from Monday’s 
and suggested a steep learning 
curve in the Trident camp. 

The justices indicated on 
Monday a lack of evidence in 
court of Trident's suitability as 
a gaming company. Plenty was 
on hand yesterday, including 
Mr Peter Neivcns. the former 
deputy assistant commissioner 
at New Scotland Yard. Since 
joining Trident, said Mr 
Ncivens, he had "read every 
paper (on gaming) that I have 
ben able io gel hold of . . 


CONTENTS 


Politics today: the inner and the outer 

Cabinet 24 

Cross-Channel link: waiting for an act 

of will 25 

Commercial law: partnership not regis- 
trable for VAT 13 

Technology: loose change a thing of the 

past *4 

Management: why Texaco is set on a 
new course 19 


Property column: London’s £200m Vaux- 
hall plans 20 

Editorial comment: looming crisis in 
Brussels; catalyst for South Africa 24 

Lombard: David Lascclles on. how banks 
judge country risk 25 

Finance for technology: insurance com- 
panies’ Cogent plan 31 


Gold Markets 30 

Inti. Companies ... 32-35 

Leader Page 2a 

Loners 25 

Lex Vt London 37 

Lombard 25 Well Street 36 

London Qpttops 28 Bourses 36 

Management ..... 1? Technology 14 

Men a Matters ... 2* UK News: 

Mining 28 General 8,9 

Money Mamets ... 38 Labour .. . ID 

Overseas 4 TV and Radio 13 

Parttement 12 Unit Trusts: 

Pro pony 2D Authorised 38- 

For latest Share Index phone 01-246 8Hi'6 


American NeWe ... 5 

Appointments H m ID 

Aru — S3 

Bank Return 27 

Base Rates 2 

Commodities ..... 30 

Companies UK ... 28-29 

Crossword 23 

Entartoirt, Guide ... 23 

Euromarket* 32 

European News ... 2. 3 

European Options 29 

FT Actuaries 37 

Foreign Exchanges 38 


Survey: Milton Keynes 

.... 15-18 

Property Advttf. ... 31*22 

Racing 13 

Sham tnlormation 40. 41 
Stack Markets: 

Others 

.... 39 

World Trade .. 
World Value S .. 

6 

37 


INTERIM STATEMENTS 

SKF 29 

Ultramar 27 

ANNUAL STATEMENTS 

Currys 36 

Gerrard & Nat ... 2C 

KCA Inti 28 

SA Breweries 29 

Tharais 29 


I 



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8,800 sq. ft approx 

TO LET 

Knight Frank& Rutley 

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•/ 











2 


. Financial Times. Frida# Max )£ 1982 


EUROPEAN NEWS 


Riot police move j^ n vote 

to auell token plastic 


VAN AGT MAY TRY TO PUSH THROUGH CUTS 


to quell token 
Solidarity protest 


BY WALTER ELLIS 


factor vital 
in Soviet 


bullets 


By CHRISTOPHER BOBINSKJ IN WARSAW 


THOUSANDS OF people in the calm and order in factories 
centre of Warsaw showed their should be dismissed from their 


opposition to martial law by posts, 


showing victory signs as drivers This order means that the 


blew their car horns at noon authorities are unlikely to get . 


yesterday. 


a full picture of the industrial 


But in outlying parts of the action as managers will want to 
city traffic moved normally and conceal any incidents from their 


there were few outward signs superiors. 


of support for the call by the Warsaw University, how- 


underground Solidarity leader- ever, the support for the union’s 
ship for a minute-long halt to pajj was impressive and 


traffic and a 15-minute strike, thousands of students and staff 
to mark five months of martial ea me 0 ut into the main court- 


The token protest in the city minutes. 


yard and stood quietly for 15 


centre ended when strong de- At Hma Warszawa steel- 


tachments qf hejmeted riot wor i CSf ^ northern Warsaw, a 
police moved in to clear the j actor y siren sounded at noon 


and traffic inside the works 


The incident showed that the gates thinned out. 
sympathies of ordinary people ^ trucks and trailers started 
are with the suspended union a „ airv at 

and that they are impatient for H5 


an end to the restrictions. 


that some kind of protest had 


I cuu uit J taken nlipp 

But in the industrial plants p ~ . , ' 

cimnnrt ic Meanwhile. at the Bialoleka 


treat the union's underground ^ intoned Solidarity activists 

M start a pro,Kt 


little sign of a stoppage. * \ * 


press spokesman, claimed mat 
despite “the colossal propaganda s 

for the strike in the Western a uni mil 


deputy until 
and one of 


media, nos trike had in fact Solidarity leader’s critics. 


taken place, and the country had 
stayed calm at noon." 


The imprisoned .activists have 
said they are in favour of talks 


He did say that in some fac- with the authorities on the 
tories groups of workers, had moderate terms outlined by the 


stopped work but “these could Catholic church. 

. - « ' A rtv. : _ -Li 


be counted on the fingers of .one 
hand." 


This . shift in attitude 
coincides with a change in the 


Earlier in the week Mr mood of people, at least in the 
Andrzej Jedynak. a deputy- capital. 


premier, had circulated a note A church service; on Wednes- 


re minding ministers that any- day evening for Marshal Jozef 
one taking part in strikes could Pilsudski, Poland's pre-war 


he sacked or relegated. 


military leader, attracted some 


The note, dated May 10. also 4.000 mostly young, people. 


that factory managers But despite a strong police 


"tolerating, the disturbance of presence no incidents ensued. 


The European Parliament yes- 
terday voted overwhelmingly 
to ban the use of plastic 
bullets throughout the Com- 
munity. 

After a debate sparked off 
by the death in Londonderry 
last- mouth of a 12-year-old 
hoy hit in the head by a 
plastic ballet. MEPs voted in 
favour of four separate resolu- 
tions, three of which called 
on EEC governments to barn 
plastic bullets. 

A fourth urged governments 
to respect human life and 
cease -using “ lethal weapons ” 
against civilians. British Con- 
servatives voted against the 
. measure.. . . . 

Mr Derek Prag. a British 
Conservative told the Parlia- 
ment that security . forces in 
Northern Ireland faced an 
unpleasant and dangerous 
task, and all violence was 
deeply regretted. But Govern- 
ments accepted that there bad 
to be control, and the British 
Government had adopted the' 
principle that it should be 
kept to the minimum possible. 

He said water cannon and 
CS gas were inefficient and 
rubber bullets haphazard in 
the control of rioting. So far. 
plastic bullets had been found 
to be the most effective and 
least dangerous form of con- 
trol. 

Mr Bichard Ball e, a Labour 
HEP, said 100,000 plastic 
bullets bad been fired by 
security forces in’ Northern 
Ireland and 14 people had 
died. 

He joined Independent 
Irish MEP. Mr Nell Blaney 
and . Communist members in 
a- resolution noting that Mr 
William Whitelaw, Britain’s 
Home Secretary, recently 
stated that plastic bullets had 
net been used 'during riots in 
England “ in case someone 
might get killed." 

Agencies 


i THE DUTCH could face a Liberals into short-term accept- the Premier would be more at budget by FI 2.3bn (£482m) 

period of minority government ance of a minority adntini- home with them in government this year and by a further 

following Wednesday night's stration to be followed by than with the truculent FI &5bn (£li.Sbn) in 1983 and 


succession 


0 

0 

; -fii 


break-up of -the three-party elections in the autumn. 


Socialists under Mr den Uyl. . sees as his main targets the 


By Anthony Robinson in Moscow 


coalition with thd departure of The consensus yesterday was Last May's general election, national minimum wage, sick- KREMLIN watchers seeking 


its six Labour Party ministers, that Mr van Agt would some-- however, made this impractical ness benefits and the proposed 
Labour • had steadfastiy how soldier on, seeking, with since the Democrats 68 Party job creation scheme. 


refused to endorse the dominant Liberal support, to get his was needed to make up numbers Labour would have none of 


Christian Democrats' proposal of economic cuts on to the statute in any realistic comimrsHon and this. Its alternative cuts in 

economic cuts, which would books as quickly as possible. He had refused to work with the the defence budget— met with a 


have included tax breaks for knows that labour fears elec- Liberals. 


xndsutiy, reduced public spend- tions just now. but must also The Christian Democrats and Mr van Agt. 


similar frosty reception from 


ing, less government borrowing reckon with the combative spirit Democrats 66 appear deter- The result is that Queen 


and a setting aside of Labour’s of Mr Joop den Uyl, the labour mined to go ahead with the Beatrix and her Council of 
cherished scheme for large-scale leader, and the possibility that same interim spring budget that State were . left to decide 


clues to the state of the inter- 
necine' succession struggle in 
the Politburo are intrigued by 
the appearance of Mr Kon- 
stantin Chernenko to deliver 
a message of greetings from 
the party central committee 
to a meeting of political com- 
missars of the Soviet armed 
forces this week. 


job creation. further confusion might reign pitched Labour over the brink whether the Netherlands has a m, tW 

Last night Mr Dries van Agt, after an autumn general elec- Both parties believe (that the Government. If it seems in the rvirfiw TiciirvL- t yl 

the Christian Democrats leader, tion if, once again, no political Netherlands is~ liuiirg beyond country’s best Interests that ft 
was still Prune Minister, sup- blloc gains a clear majority. its means and that, unless some- does, then the question remains 


ported by the small Democrats The Liberals (right-of-centre thing is done quickly, the enor- whether 


’66 Party. But without Labour despite their name) are broadly mous cost of maintaining the should have full -status or 
support he has no parliamentary sympathetic to Mr van Agfs country’s generous welfare simply be a caretaker govern- 


majority^ and, it seems, must policy of economic retrench- state will ruin the economy. meat, legislatively -hamstrung, 


opposition meat, and it is no secret that Mr van Agt wants to cut the pending a new ejection. 



yai uaicve wiaL xoc uovciiftocut. jli u status lii me Man-dial THmitrw T1«slinftv th*» 

Netherlands isr Ruing beyond country’s best interests that tt Marshal 

its means and that, unless some- does, then the question remains 
thing is done quickly, the enor- whether that Government 

mous cost of maintaining the should have full .status or ™ 

country’s generous welfare simply be a care ! nicer govern- 22J*"*"* iLSS.2^3 

state will ruin the economy. meat, legislatively -hamstrung, se ^?w 
Mr van Agt waJ *s to «t the pending , new ejection. 

and awareness within the 

_ armed forces as the Soviet 

Rebel priest charged 

' ' , ' . Support from the armed forces 

after attack on Pope ISSSlSr 

Leonid Brezhnev when be dies 

8Y DIANA SMITH IN LISBON or retires. Hitherto, Mr Cher- 

• •• •• nenko has not enjoyed the 

A STRONG mood of religious supporter of Monsignor Marcel close links with the military 

devotion and serenity returned Lefebvre of France, the dissi- maintained by Mr Brezhnev 

to Portugal yesterday during dent archbishop who broke with Mr Chernenko’s rapid rise to 
the second day of Pope John the Catholic Church’s reform prominence over the past five 
Paul H visit, despite the tmme- movement in recent years. or six years has been prin- 

diate feeling of shock through- Police said Krohn’s mental cipally due to his personal 


Rebel priest charged 
after attack on Pope 


8Y DIANA SMITH IN LISBON 


A STRONG mood of religious supporter of Monsignor Marcel 
devotion and serenity returned Lefebvre of France, the dissi- 


diate feeling of shock through- 


out the country tlmt follow^ condition appeared sound and 
PorrtifFs We he was “very determined.” They 


the night before. 


he was living outside 


Police in Lisbon Tvere inter- p ar i S| an d that his passport was 
regaling a man identified as ^sued in Buenos Aires. They 


Joan Fernandez Krohn a 32- have contacted Interpol, the 
J3*2“ international police organlsa- , 


religious dissident from Spain, 
whom they charged with ' 
attempted murder, a crime . w 


AP adds from Geneva: Krohn 


iuuiuvi. 4,1 Ullt- - , , - 

carrying a sentence of 15-20 * as ®.°t ***? . of 

years. Krohn is to appear Archbishop Lefebvre s move- 


years. Krohn is <o appear 
before examining magistrates 
today. 


ment for two years,, according , 
to a statement issued at the i 


A* crowd estimated at lta Whife^S^Sine^'is able to 


Security agents restrain Krohn after the attack 


heard the Pope say Mass at. the ^ a ^^ 0 .° ali5ts 
religious shrine of Fatima fraternity. . 
yesterday where he gave thanks “This pries 


This priest has constantly 


A LONGER 


to the Virgin Mary for sparing disagreed with Mgr Lefebvre,” 
his life exactly a year ago from said the statement read by a 


an assassination attempt in St nun. in response to a telephone 


Peter's Square in Rome. 


inquiry. “Two ' years ago he 


Tuesday night, ceased being a member of the 


hundreds of thousands of Portu- fraternity. We are all united 


remain titular head nf state 
and party, however, the prin- 
cipal object of' the power 
straggle within the Kremlin 
appears to be the coveted post 
of party secretary responsible 
for ideology. It became vacant 
in January when Mr Mikhail 
Suslov died. 


guese televirion viewers saw an behind the Holy Father. We ^*bi s jj ey position in the Corn- 


assailant, dressed as a priest, pray for him every day.” 
lunge at the Pope. The assail- Mgr Lefebvre, who 


STEP FORWARD. 


ant was wielding a long bayonet believed to be visiting the U.S., 
and shouting abuse. He was founded the movement in 1970 


overwhelmed by Vatican and to fight what he once ’ called 
Portuguese security men. The the “virus of liberalism" spread- 


Pope was seen to bless the man ing in the Roman Catholic 


as he was being restrained. 

The attack occurred during a 


Church under Pope Paul VL. ... 
The 75-vear-old Archbishop 


candlelight procession attended was stripped of priestly duties 
by 'hundreds, of - thousands .of in 1976 over- his continued oppo- 


Portuguese and foreign 


sition to church reform. He has 


grims on the first day of the denounced the reforms and con- 


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THE Bono Government yes ter- seemed to suggest that some 
day reacted sharply to hints countries like West Germany 


from the Organisation of Eco- and Japan — had room to 
nomic Co-operation and Develop- manoeuvre because of their in- 


ment fOECD) that it should flation rates and could pursue a 
stimulate the West German more expansionary policy. 


economy to increase worldwide 
economic demand. 


This interpretation is being 
put on the sentence in the com- 


In an economic debate in ^unique Which reads: “ Where 
parliament yesterday, - Herr the- underlying in 8a tion has 


Manfred Lahnstein, the new been significantly reduced, yet j 
West German Finance Minister, domestic demand is weak, the . 


■ > ■■ ' ■' 


left his feelings about a return tisral stance should be .assessed 
to the "locomotive” theory of with due regard to its i likely im« 


economic growth in no doubt. P ac * on economic activity with- , 
The theory was iu-.fashion in jeopardising medium-term 


the late 1970s and endorsed at objectives, 
tiie 1979 Bonn economic summit. Bu t 'the 


munist system, where ideolocy 
matters greatly, is also 
coveted by Mr Yuri Andropov, 
the 67-year-old head of the 
KGB. 7n effect; he threw his. 
hat into the ring on April. 22 
when, he delivered the key- 
note speech at a Kremlin 
meeting to commemorate 
Lenin’s birthday. Many of the 
military leaders present on 
that occasion, were also there 

• on Tuesday to bear Mr 
Chernenko. 

Whether they were impressed re- 
mains an open question. Like 
TV viewers throughout the 
nation, they were able to see 

. that, whatever Mr Chern- 
enko’s other virtues, those of 
a good public speaker are not 
among them. Unlike Mr 
Andropov — who is tall, looks 
like an intellectual, and who 
delivered his Lenin Day 1 
speech in a strong, well-modu- 
lated voice — Mr Chernenko 
kept his eyes on the text, : 
stumbled in places and spoke < 
in an expressionless tone. 

The photograph of Mr Chern- 
enko addressing the meeting 
also told its story. It covered 
half the front page o£ 
Krasnaya- Zvezda <Red Star), 
the army newspaper and • 
showed Mr Chernenko— small. 

• with rounded shoulders, 
slightly slanted eyes and a 
shock .of white .hair— sur- 
rounded by the flower of the 
Soviet armed forces. 


» w„ ha. suggestion at the world eco- 

rixtoiv *!? nomic summit at Versailles next 

cisi>ely any re introduction of naprimiin-pWrm. 


But the spelling out of this Many are in their late 40s and 
ggestion at the world eco- 50s, with the int ellig ent faces 


that old chestnut,” Hen: Lahn- 
stein told the Bundestag. 


month would be particularly tm- 
welcome at this time. 

The coalition government will 


He said that Bonn's agree- be grappling to prevent further 
ment in 1979 to increase public expansion of the budget deficit 


■ 'P:,yS. 

> :0k-;' . • . . " Jk 


sector demand by some DM 13bn for 1982 — a supplementary 
(£3bnt had disastrous conse- budget must already be pre- 


quences for in 8a tion and unem- sented -r- and must agree on the 
ployment in West Germany. target deficit for 1983. 

The communique issued on The Government -has already 


of well-educated, professional 
competent men of a new 
generation, whose ambitions 
and desires remain, for now, 
shrouded in mystery. . But 
strong leadership by a man 
«ble to project -Soviet power 
and prestige is almost cer- 
tainly one of them. 


target deficit for 1983. «-i — ■ 

The Government -has already financial times, published ds iy, 




Tuesday by ministers of the 14- been obliged this week to reopen weept. Sundays and hoiidaj/a. u.s. 

member OECD at their meeting the question of financing a |£ond P ' cl3 8 ” l UsS '* « V n 

in Paris, though couched in al- DM 4h n investment bonus to y 0 r*, n.y... and ar additional maihaa 

most impenetrable language, create jobs. centres. 


Wm 




BASE LENDING RATES 













A.B.N. Bank 13 % 

Allied Irish Bank 13 % 

American Express Bk. 13 % 

Amro Bank 13 ^ 

Henry Ansbacher 13 % 


Robert Fraser 14 « 

Grindlays Bank tlZ *> 

Guinness Mahon 13- ‘ 

Hambras Bank 13 

Heritable & Gen. Tru^t 13 ® 


Arbuthnot Lathani 13 % MHai Samuel ,..;..5l3 




"wAVi-ev • 


RICOH FW420 

A4/A3/A2— AND LONGER! ' W ; . 

Ricoh UK Ltd.-, Rkefe-House, 24'325tephenson Way, LbiufcnN.W.l tel : 01-388 035L • . 


Associates Cap. Corp. 13 % 

Banco de Bilbao 13 % 

BCCI 13 ^ 

Bank Hapoatim BM ... V3 % 
Bank Leumi (UK) pic 13 o?, 

Bank of Gipruv 5.1 % 

Bank Street Sec. Ltd. 14 % 

Bank of N.S.W 13 % 

Banque Beige Ltd. ... 13 % 
Banque du Rhone et de 

la Tamise SA. 13J% 

Barclays Bank 13 % 

Beneficial Trust Ltd. ... 14 % 
Bremar Holdings Ltd. 14 % 
Brit. Bank of Mid. East 13 % 

B Brown Shipley 13 % 

Canada Perm’t Trust... 13J% 
Castle Court Trust Ltd. 131% 
Cavendish G'ty T’.st Ltd. 14 % 

Cayzer Ltd 13 % 

Cedar Holdings 13 % 

■ Cnartcrhouse Japheu.. 13 % 

Choulartons I3t% 

Citibaj^ Savings 

Clydesdale Bans 13 % 

C. E. Coates 14 % 

Comm Bk of Near East 13 % 
Consolidated Credits... 13 % 
Co-operative Bank ...... fl3 % 

Corinthian Secs 13 % 

The Cyprus Popular Bk. 13 % 

Duncan Lawrie 13 % 

Eagil Trust 13 % 

E.T. Trust 13 % 

Exeter-TrusLitd 14 % 

First Nat. Fin. Corp- -- 15J% 
First Nat Secs, Ltd.,.. 15i % 


C. Hoare & Co .413 % 

Hongkong & Shanghai 13 % 
KingEoorth Trust Ltd. 14 % 
Knowsley & Co. Ltd. 131% 

Lloyds Bank 13 % 

Mallinhall Limited ... 13 % 
Edward Manson & Co. 14 % 

Midland Bank .13 % 

W Samuel Montagu 13 % 

■ Morgan Grenfell 13 % 
National Westminster 13 % 
Norwich General Trust 13 % 

P. S. Ref son & Co 13 % 

RoKburghe Guarantee 13 

E. S. Schwab 13 % 

Slavenburg's Bank ... 13 % 
Standard. Chartered ...||13 % 
Trade Dev. Bank 13 % 
Trustee Savings Bank 13 % 

TCB Ltd. 13 % 

United Bank of Kuwait 13 % 
Whiteaway Laidlaw ... 134% 
Williams A Glyn’s 13 % 
Wintrust Secs. Ltd.--:.. -U % 
Yorkshire Bank IS % 

■ Members of Ihs Accepting Hoti * M 
Committee. 

■ 7-day deposits 107.', 1 -month' 

10.25%. Shore terra £8,000/12 
month' 12.3%. ' * : 

t 1-tn» doooaiia on oiuns .of: .Under 

£ 10.000 £ 10 . 000 .. up. » : 

CSO.OOO 11%. £50,000 and cent 
n*i% ■ 

| Coll daposiu £1.000 and ovar 
Wi- 
ll 21-day . dapoaiU .awar £l^3Q0 r 1lW. 

S Oomand 1 deposits 10\»%- :■ 

S Mgrtgnqa Oasa ret*, - - <• 


MINISTRY OF THE 
INTERIOR 
COMPANHIADO 
DESENV OLVIMENTO 
DO VAUE DO SAO 
FRANCISCO 
— CODE\ : ASF — 
INTERNATIONAL BED 
NOTICE. No* 21/82 
ANNOUNCEMENT 


The Bidding Division, of COD EVAS F 
annauness - that at 3.00 p.m. on 
Juna-ia, -.1382. m. ns auditorium on 
the 14th floor of Edilicio Central 
Breallia. SWor Sancdno None. 
Projaoao 14. Brasilia, federal Dis- 
trict. it twill receive bids lor the 
civil . construction work of tho 
secondary p urn pi no stations (P5s1; 
transport and. installation of piping, 
accessories, valves end air vents 
for tha . sprinkler network; and 
supply and assembly o! the hvdto- 
macfiafifc aqutpmanr for the PSs of 
ths Massangano Project lacstad 
downstream ot the Sobredinho Dam 
in the Municipalities cf Petralma 
and Case Nova. States ol . Pernam- 
buco and ftahie, BhSril. ; 

The services are being financed by 

the intareffieriun Development 
Bank — IADB. • 

The notice emf lta attachments vfen 
bo acquired ji the Bidding Division. 
'Bth- -•floor; room 'S02-. of the above 
, address. - (or a pries of CrfSO.OCP 
• (sUUj dreueand. cruzeiros),; .... 

.. Brasilia, April S3. 1862 
- MANAGERirelfTOP 
. GENERAL AQMINIS7MT1QW 






prominence over the past five 
or six years has "been pr'rn- 1 
cipally due to his personal 
relationship with Mr 
Brezhnev, for whom he has 
acted as a kind of superior 
private secretary. In that 
position, he has kept close 
contacts with Brezhnev pro- 
teges throughout the party 
and government and is be- 
lieved to be the favourite 
candidate of those whose posi- . 
tions might be at risk if Mr ; 
Brezhnev were to give way to 
another man keen to- establish 


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Vi- 


Financial Times Friday May 14 1982 


EUROPEAN NEWS 





East Berlin digs I Contraction 

. ., , , forecast 

in its heels over m Swiss 
Bonn’s credit economy 


BY LESLHs COUTT IN SERUM 

AST AND VEST Germany 
re locked in a bitter contro* 
srsy over inter-German trade 
nd humanitarian contacts, 
ssucs which ironically are 
ivisive because they bind the 
ao states together. 

Less than sis* weeks remain 
efore Vest Germany's annual 
merest free “ swing “ credit of 
»M S50m to Cast Germany runs 
ut. The credit, u>ed by Easr 
iermanv to overdraw its trade 
ccount with West Germany, 
fas extended for a half year at 
ast December's summit meeting 
•etwee n Chancellor Helmut 
ichmidt and Herr Erich 
. lonecker, the East German 
'resident. 

West Germans participating 
!t the summit said it was made 
Icar to East Germany that 
here would be no renewal of 
he DM 850m credit beyond 
June .10 unless East Germany 
aw the ".wins" in its “poll* 
seal context." 

This mean? that Bonn 
MEpectcd East Germany to 
■educe the amount of currency 
Nest Germans and West 
3crliners muss -exchange into 
5asl German Marks to cross the 
3 order. The amount was tripled 
jv East Germany ;n October. 
i9S0. The number of Vest 
3e rimers visiting friends and 
relatives in the East has since 
fallen hy half, sinking at the 
aearc of West Germany's policy 
towards its neighbour. 

In recent weeks East Berlin 
flas told Boon it has nojnfen- 
:ion of reducing the border 
»xchange fee in order to obtain 
renewal of the “swing." The 
credit automatically reverts lo 
DM 200m if no agreement can 
be reached. 

A classic game of bluff 
appears likely to ensue in 
coming weeks. East Germany 
knows that Bonn regards the 
“swing" as vital to expanding 
trade with East Germany which 




*«r 


Herr Honeckcr . . , made 
political demands ! 

1 

Wes* Germany sees as one of ] 
the few remaining clasps { 
between the two stale?. i 

On the other hand Bonn is j 
aware of the importance East j 
Berhn attaches to Hie “swing” ; 
and the likelihood Western I 
bankers might regard its reduc- 
tion as a sign of East Germany's 
lowered credit worth mess. How- 
ever, Chancellor Schmidt also 
realises East Germany will not 
knuckle under to any form of 
West German pressure. 

The East German leadership 
is facing pressure from another 
source, its own population, on 
the border exchange fee for 
Westerners. Fewer visiting 
Westerners has meant fewer 
D-marks can be given to East 
German friends and relatives 
which they use to buy Western 
goods in the East German 
Intershops. 


By David White in Parts 

THE SWISS economy is 
likely to contract by about l 
per cent this year, (he Organi- 
sation for Economic Co- 
operation amt Development 
says in its annual report on 
Switzerland published today. 

The OECD secretariat says 
It pitelies its estimate for the 
decline of the country's gross 
domestic product in real terms 
rather higher than (he Swiss 
authorities' own forecast. 

It expects a similar drop in 
total employment. hut 
suggests that the main Impact 
will be felt hy seasonal im- 
migrant workers in Uu- con- 
struction Industry, where 
fixed investment is seen fall- 
ing by as much as 4.5 per cent. 

However, it pre diets a re- 
covery next year with a 
growth rale of 2 per cent, 
compared with L9 per cent In 
1381. 

Inflation, after reaching 6.5 
per cent lost year, is expected 
to come back down this year 
to around the 19Rfl level of 
4 per cent and to continue 
failing to about 2*5 per cent 
next year, according to the 
report. 

A fall fn import volumes is 
seen bringing a further 
Improvement in the trade 
balance and consolidating the 
surplus on the current 
account of (he balance of pay- 
ments. The OECD says this 
could reach $3.5 hn this year, 
compared with $2bn in 1081 
and a $540m deficit in 1980. 

In view of its relatively 
strong economic performance, 
Switzerland is criticised for 
falling to do more to improve 
its record on official develop- 
ment aid. Although the 
country supplies large 
amounts of private aid, official 
assistance reached only 0.24 
per cent of GDP in 1980, com- 
pared with an OECD average 
of oJ7 per cent 


BY VICTOR WALKER IN ATHENS 


A THREE-STAGE set of talks 
beginning in Athens this week- 
end is expected to indicate 
whether the “all quiet" on 
Greece's western front repre- 
sents only an armistice or is a 
prelude to a peace treaty. 

air Alexander Haig, the U.S. 
Secretary of State, is expected 
in Athens tomorrow for a 24- 
hour visit after talks . with 
Turkish leaders in Ankara. He 
will be the first senior member 
of the U.S. Adnunistraiion to 
visit Greece since the general 
election victory of Dr Andreas 
Papandreou’s Panhellenic 
Socialist Movement last October. 

Mr Haig is to be followed 
early next month by General 
Bernard Rogers, the Nato 
Supreme Commander, and about 
a week later Dr Papandroou is 
to have his first meeting with 
President Reagan at Uie Nato 
summit in Bonn. 

The three-phase discussions 
will include Greece's relation- 
ship with the alliance and the 
future of U.S. military bases in 
this country. 

After their landslide electoral 
victory last year, some Pasok 
members had expected to direct 


course towards non-alignment, 
which had seemed to be 
promised by such popular 
campaign slogans as “Greece 
Out of Nato” and -"Close the 
Bases of Death.” 

But even before the election, 
Pasok had gradually softened its 
stand on both issues. 

It still wants some form of 
Nato or U.S. guarantee of 
Greece’s Aegean borders against 
possible Turkish aggression, but 
its position in other respects 
was summarised this week by 
Dr Papandreou during an 
official visit to Algeria. He said 
that while Greece was still 
against large blocs, “considera- 
tion has to be given to strategic, 
realities and balance of power 
problems in conjunction with 
our special national problems 
and defence requirements." 

It is believed Greece would 
accept a guarantee couched in 
general terms without specific 
reference to Turkey. 

As for the bases, the Govern- 
ment wains nuclear warheads 
removed as part of a general 
Balkan denuclearisation, and a 
more effective control of opera- 


Stephen Instone, recently in Budapest, reports on the drive for economic efficiency 

Strong medicine for Hungary’s service sector 


j CROWDS OF inquisitive 
! Hungarians have recently been 
gathering m Budapest res- 
| tau rants: not to cat, but to bid 
for other restaurants— <pjf£ of a 
collection, of state-owned cafes, 
small shops and bars which have 
1 come under the hammer for 
any Hungarian entrepreneurs to 
buy. 

These public auctions were 
Introduced last October by the 
Hungarian Government to give 
greater emphasis lo the role of 
the private businessman as a 
means of instilling more 
efficiency, particularly in the 
service sector of the Hungarian 
economy. 

This efficiency drive acquires 
a new importance widi 
Hungary's entry last week into 


the International Monetary 
Fund. One of the men who 
helped negotiate DIF member- 
ship is Professor Mihaiy SUnai, 
head of the Instimrc for World 
Economics in Budapest. Pro- 
fessor Simai is of the opinion 
that this trend towards greater 
“privatisation" is the only 
medicine strong enough lo get 
(he Hungarian economy back on 
its feet. 

“We must Increase the 
flexibility of the Hungarian 
economy and introduce more 
incentives." Professor SLmai 
says. "Wfi have been running 
too egalitarian a wage and 
salary system." But what sort 
of people have been buying the 
new businesses and what are 
the problems they face? 


The case of Mr Ferenc 
MoJnar, proud owner of the 
Lajostanya Sorozo restaurant in 
Budapest, is instructive. He 
bought this restaurant from a 
state-owned company last 
autumn for 4.2m forints 
(170,000), with a down payment 
of 2.S6m forints and the rest to 
be paid back to the state over 
five years. 

Mr Molnar had been z profes- 
sional footballer. Injury forced 
him out of the game, but under 
a scheme for footballers briefly 
run by the State insurance com- 
pany he got a lump sum m com- 
pensation — 600,000 forinis, Mr 
Molnar says. This is a means of 
amassing capital not open to 
most Hungarians. 


Mr Molnar says ft is now up 
;o him 40 make the restaurant 
profitable enough to pay back 
the sum he still owes w the 

State. " If I cannot pay it back. 

they will take away all the 
furniture, plates and dishes, and 
I do not know what will happen 
then." But Mr Molnar says he 
has plans for expansion and had 
found a similarly entrepre- 
neurial wine company ready to 
pay for the conversion of an old 
sroefc room into a new cellar. 
"Provided I sell only their 
wine. I can keep all the profit,” 
he says, 

Mr Molnar also gets lenient 
tax treatment from the state. 
He explained that the tax on 


his earnings— between 2 and 3 
per cent — and his social security 
payments are still assessed as 
if he were in his former job 
earning only 3,500 forints a 
month. This means that any 
profit he now makes over and 
above that — up to 16.000 forints 
a month— goes straight into his 
pocket 

This Is only one of many 
small private businesses sprout- 
ing up in the services sector but 
whether the system of public 
auctions is an unmitigated bless- 
ing is a matter of debate. Some 
Hungarians complain that the 
auctions merely favour the rich 
and not the qualified and worry 
that the country may bo going 
from one extreme to another. 


Eta’s gunmen bring Basque N-project to a halt again 


BY ROBERT GRAHAM. IN MADRID 


ALL WORK on the two-thirds 
completed Lemoniz nuclear 
power station near Bilbao was 
hailed indefinitely yesterday. 
This followed a decision taken 
jointly by the Spanish Govern- 
ment, the Basque Government 
and Iherduern, the private 
litiliiy that owns the S2bn twin 
930 MW plant. 

About 3,800 worker; at the 
plant win be directly affected. 
The decision has been forced 
by lhc assassination last week 
of Sr Angel Pascual Mpgica. the 
plant manager, by Eta, the 
militant Basque separatist 
organisation. The latter has 
vowed to prevent Lemoniz from 
functioning and in February 
last year kidnapped and 
murdered Sr Pascual's pre- 
decessor, Sr Jose Maria Ryan. 
As a result of these two assassi- 
nations, the 90 technicians have 
declined to resume work until 
security improves. Most of them 
have stayed away from work 
since lhc killing of Sr Ryan 
more than a year ago. 


The halt on an work at 
Lemoniz, 10 miles from Bilbao, 
will be temporary, the Spanish 
Government insists. Indeed, 
neither Madrid nor the Basque 
regional government can afford 
to let Ela impose its will. The 
killing of Sr Pascual last week 
has been widely regarded as a 
direct challenge hy Eta's hard- 
line military wing io the Basque 
administration, which is con- 
trolled hy the moderate Basque 
Nationalist Party. 

There is no easy solution. It 
took almost a year's negotiations 
after Sr Ryan's death to pave 
the way for what seemed a 
solution to Lemoniz. The solu- 
tion involved Iberduero handing 
over operational control to the 
Basque government who in turn 
formed an energy holding 
company to da this. 

Iberduero retained ownership 
and effectively transferred its 
personnel neeessary to the 
operating company, while the 
Madrid Government retained 
responsibility for safety via the 


Key Greek talks open with Haig 


tions to prevent any activities 
that could harm Greece's 
interests. 

But Dr Papandreou has 
neither followed through on his 
election promise to re-open Par- 
liamentary debate on the 
“Rogers Agreement" nor 
pressed for negotiations on the 
bases. 

The Rogers Agreement, 
negotiated two years ago 
between the Nato Supreme 
Commander and ihe previous 
Conservative Government, pro- 
vided the formula under which 
Greece returned to the Nato 
Unified Military Command in 
October 1980. 

Pasok objected that Ihe agree- 
ment failed to restore the com- 
mand control situation in the 
Aegean existing until 1974 but 
subsequent!" amended in Tur- 
key’s favour to fill the vacuum 
created by Greco’s withdrawal 
from ihe alliance. Instead, the 
agreement left these responsi- 
bilities for settlement later. 
The absence of any progress on 
the command issue has made it 
the principal dispute between 
the two countries within the 
alliance. 


Nuclear Safety Commission. 

Before this solution was 
agreed three months ago, 
Iberduero said it was ready to 
act alone and halt all work on 
the plant. It was this threat 
which produced the agreement. 
Now the problem is more com- 
plex. Unless technicians can be 
found to work on the plant — 
the first unit is due to be opera- 
tional nest year — the project is 
useless. 

There is talk of recruiting 
foreigners and some discussion 
hus been held with Bechtel to 
provide such personnel. But 
this raises the more general 
question of security in the 
Basque country. So long as 
Lemoniz does not work, it is 
the most dramatic testimony to 
the power of Eta to dictate 
through violence. 

The Basque government has 
consistently argued that security 
in the region will only show 
a real improvement if they have 
greater control over the 
security forces — and better 


.B? 

GM^ 

IBM, 

ICI, 

m, 

RHM. 


Z? 


still if they have more of their 
own Basque forces. 

This is a source of friction 
with Madrid. The Spanish Gov- 
ernment conceded the Basques’ 
right to a limited police force 
so long as it was subordinate 
to the central Government. 
However, it is adamant in not 
conceding a greater say in 
security matters, despite Basque 
protests. 

Another aspect is the finan- 
cial position of Iberduero with 
Lemoniz representing more than 
a third of its fixed assets, 
according to bankers, Iberi-iero, 
Spain’s largest private utility, 
has the resources to write off 
the entire Lemoniz investment. 

Some 70 per cent of its cur- 
rent generating capacity comes 
from hydro-electricity in a good 
rain year — projects already 
amortised. Iberduero is the best 
known private borrower with 
some $Ibn worth of foreign and 
pesera loans currently out- 
standing. 


Iberduero is unlikely to do 
this and it now seems that there 
is growing pressure for state 
ownership of Lemoniz. Until 
now, this step has been resisted 
because of the precedent it 
would create in an industry of 
which -the state only controls 
20 per cent 

Finally, there is the problem 
of energy supplies. The Basque 
country is short of energy and 
Lemoniz has been regarded by 
the Basque administration as a 
means of attaining a measure 
of self-sufficiency. But in the 
long run this self-sufficiency is 
notional within the context of 
the national grid. 

The demise of Lemoniz would 
almost certainly produce a 
shortfall in generating capacity 
with consequent serious effects 
on electricity supplies nation- 
wide. It would also have per- 
mitted a capitulation to the 
anti-nuclear lobby in a country 
still over 60 per cent depen- 
dent upon imported energy. 


A Series of Advertisements 



Mr- Dick Wilson 

After many years of success 

through production engineering, 
Japanese corporations are now taking 
a lead in several areas of science and 
technology- Last .year the Financial 
Times published a series of interviews 
by Dick Wilson with Japanese 
companies operating in Britain, under 
the tftie insight into Japanese 
Management Many ^ readers 
appreciated that series of 
advertisements, and so next Monday, 
May 17, we follow it with another 
entitled Insight Wo Japanese 
Technology. 


Dr. Yotaro Yanasc 


Dick Wilson, the distinguished 
writer on Japan, has collaborated 
with Dr. Yotaro Yanase, a leading 
Japanese scientist, in visiting com- 
panies in Japan in electronics, 
steel, computers, cameras, motor 
cars and distribution, talking to 
their highest executives about their 
Research and Development pro- 
gramme. These new profiles will 
appear daily in the Financial Times, 
affording a rare glimpse into the 
research laboratories of Japan and 
data on latest Japanese technology 
in many of the higher-value added 
sectors of industry. 


Read this informative and enlightening series 
in the Financial Times, starting on May 17 
and appearing every weekday until June 7 



ZisforZanussi. 

Which stands for Europe’s biggest 
manufacturer of domestic appliances. 

Then there’s Zanussi electronics, 
solar energy, components, housing and 
community services. Employing 31,000 
people in 24 companies and 47 plants, 
■with an annual turnover of 1.12 billion 
dollars earned in no less than 111 coun- 
tries throughout the world. 

Which is probably bigger thanyou 
thought. 

Initially. 







4 


Financial Times Friday; May; 14 1982 


OVERSEAS NEWS 


Race reform bid I Gulf states i Israel seeks EEC block to Arab boycott 


prompts uproar 
in South Africa 


to meet 
on Iraqi 


BY DAVID UBWOM M TEL AVIV 


reverses 


By James Dorsey in Kuwait 


BY J. D- F. JONES IN JOHANNESBURG 


SOUTH AFRICA, has been 
plunged -into political uproar by 
the dramatic proposals for con- 
stitutional reform prematurely 
released by the President’s 
Council this week. 

The recommendations, Which 
include a very strong executive 
presidency and the admission oE 
the Coloured and Indian 
minority into the (at present 
White only) legislature and 
executive— are being described 
here with only slight exaggera- 
tion as the most important since 
the Act of Union more than 70 
years ago. 

By and large, politicians — 
including Mr P. W. Botha, the 
Prime Minister, and his National 
Party Cabinet — are reacting 
cautiously, since the Constitu- 
tional recommendations, which 
include a separate study of local 
and regional government, are 
so complex that they clearly 
deserve thorough analysis and 
debate. 

Dr F. van Zyi Slaibbert, 
leader of the official Progressive 
Federal Party (PFP) apposition, 
merely warned yesterday against 
“ almost dictatorial powers ” for 
the President, and emphasised 
that his party would not go 
along with any process that 
increases polarisation between 
Whites and Blacks. 

The President's Council's 
recommendations do not signifi- 
cantly affect the role or the 
rights of the 20m black majority. 

Dr Andrles Treumicht, leader 
of the new right-wing breakaway 
Conservative Party, dismissed 
the constitutional proposals out 
of hand, describing them as 
“ integration from top to 
bottom ... it is nothing other 
than Prog (ie, PFP) policy.* 



Mr P. W. Botha 


The right-wing Heistigte 
Na&ionale Party has also 
anathematised the proposals. 

The right-wing response was 
to be expected, but the Prime 
Minister will be anxiously 
assessing the white political 
response, since he has talked of 
consulting the electorate by 
means of a referendum. 

A national meeting of the 
National Party's Parliamentary 
and Provincial caucuses has 
been summoned for June 5, 
where Mr Botha is expected to 
reveal where he stands. 

Meanwhile, the right wing 
win be intensifying pressure an 
conservative National Party 
MPs and members to cross the 
floor. 

Editorial comment, Page 24 


Zaire renounces U.S. aid 


KINSHASA — The Zaire Govern- 
ment bas officially renounced 
all U.S. aid, the country’s 
official news agency Azap said 
yesterday. 

The agency's report followed a 
decision by the U.S. Congress 
to reduce the amount of aid in 
the wake of what Azap called 
“U.S. allegations that aid was 
being embezzled." 

Overall U.S. aid to Zaire is 
said to have amounted to well 
over SlOOm (£55m> a year in 
the past few years- 


Azap said President Mobutu 
Sese Seko was convening a 
special Cabinet meeting today 
to review the implications of 
what it called the “deteriora- 
tion of U.S.-Zairean relations 
caused by the unfriendly atti- 
tudes . of certain American 
officials." 

It said the decision to 
renounce U.S. aid was being 
notified to the U.S. charge 
d’affaires in Kinshasa at the 
earliest opportunity. 

Reuter 


FOREIGN' MINISTERS of 
the six-nation Gulf Co-opera- 
tion Council (GCC) have 
scheduled an emergency meet- 
ing in Kuwait for tomorrow 
amid growing apprehension 
in the Gulf over Iraqi re- 
verses in its 20-month-old war 
with Iran. 

Kuwait's Foreign Ministry 
announced that the Ministers 
of Saudi Arabia, Kuwait, the 
UAE, Bahrain, Qatar and 
Oman wUl discuss “develop- 
ments of an urgent nature.” 

Foreign Ministry officials 
privately expressed concern 
about Iraq’s apparent inability 
to bring Iran’s military offen- 
sive to a standstill. 

The emergency Foreign 
Ministers' meeting follows a 
recent flurry of diplomatic 
ac ti vi ty in the Gulf concern- 
ing the war. 

Following a visit to Kuwait 
in April, the UAE President, 
Sheikh Zayed bln Sultan al 
Nabayan, last week launched 
his own peace initiative. 

This was immediately dis- 
missed at an Informal meeting 
in Saudi Arabia attended by 
King Khaled, Sheikh Zayed. 
Sheikh Issa bin Salman al 
Khalifa, the Bahraini ruler, 
and Kuwait’s Foreign 
Minister, Sheikh Sabah al 
Ahmad. 

The emergency meeting 
also coincides with reports 
that Iraq Is about to ask GCC 
member-states for renewed 
financial support. 

Iraqi leaders have re- 
peatedly said in recent weeks 
that they intend to ask the 
oil-rich Gulf states for a new 
financial injection. 

Saudi Arabia, Kuwait, the 
UAE and Qatar are believed 
to have funded Iraq to the 
tune of $24bn (£l&3bn) in 
interest-free loans since the 
beginning of the Gulf War. 

In addition to their fears 
about developments in die 
Gulf War, the Foreign Mini- 
sters are further expected to 
review possibilities of easing 
Egypt bade into the main- 
stream of Arab politics. 

Reuter adds: Military com- 
manders in Iran said ..that 
Iranian naval ships had des- 
troyed an Iraqi warship on 
Wednesday night, Tehran 
Radio reported yesterday. 
The ship was reported in 
Iraqi waters when it was hit 
by missiles. 


ISRAEL IS potting pressure on 
the Common Market to legis- 
late against compliance by 
member countries with (he Arab 
boycott of trade with Israel. 
The issue was discussed yesfer- 

S r during a meeting in Jeru- 
em of Mr Yitzhak Shamir, 
the Foreign Minister, and Mr 
EmiKo Colombo, his visiting 
Italian counterpart. 

Officials here said that there 
is already support for such an 
idea from Britain, France and 
Denmark, with which Israel has 
already began discussions on 


legislation to counter the boy- 
cott 

Mr Sbanrir pointed out to Mr 
Colombo that a number of 
countries— includiag the U.S., 
Canada and France— have made 

it illegal for companies to 

submit to Arab demands and 
pressures not to trade wKh 
Israel. 

After the meeting, Israefi 
offlpjfoig said that the Italian 
Minister bad wo nosed to in- 
vestigate the possibilities of 
simila r legislation in Italy, and 
that he hid expressed interest 


in the proposals for Joint EEC 
legislation. 

Agreement was readied yes- 
terday on the reactivation of a 
moribund joint commission to 
deal with bilateral economic 
issues, exchanges of :ac w ns * fi«» 
tofo nnati on and cooperation 
on joint technological projects. 

Mr Colombo and Mr Shamir 
also discussed their respec ti v e 
worries about the impact of 
Spanish accession to the ESC 
on their trade within,- and with, 
the Common Market . 

• Mr Men ahem Begin, She 


Israeli Prime Minister, yester- 
day briefed the Parliamentary 
Foreign Affairs and Defence 
Committee on the situation, 
along the northern border and 
the dangers of a total break- 
down of the cease-fire Which 
went into effect In Jody last 
year. 

There is a strong, lobby in 
the Cabinet for a big Israeli 
strike against the Palestinian 
guerriUas.in Lebanon, following 
cross-border shelling by the 
latter on Sunday. 

Following (he brie fin g, oppo- 


sition. potiticians qpoke about 
the heed for. restraint Mr 
Sfa&mon Peres, ' the leader of 
the Labour Party, said: “ a 
supreme effort should be made 
by ail the . parties to respect 
the.ceasefee* 

Mr Haim Bariev, another 
Labour politician and a former 
chief of staff, said: “ the Israeli 
reactions to terrorist attacks 
should be proportionate. Not 
every single act of terror justi- 
fies on Israeli reaction that 
might deteriorate into a fuR- 
seme war." ... 


UAE rejects tighter control over foreign banks 


BY OUR DUBAI CORRESPONDENT 


CALLS FOR tighter Govern- 
ment control over foreign banks 
in the United Arab Emirates 
were rejected by Sheikh Ham- 
dan .bin Rashid, Minister of 
Finance and Industry, during a 
meeting of the Federal Council 
this week. 

Six council deputies had 
urged that there should be 
further curbs on foreign bank- 
ing activities. The central bank 
took the first big step towards 


reducing the influence of 
foreign banks when it limited 
last year the number of 
branches each cordd have in the 
UAE to eight 

Deputy Khalid Mohammed 
pressed the government to fid- 
low Saudi Arabia’s example and 
transfer control of foreign 
banks to local hands. Foreign 
banks were “SaudWsed” in 
1980, following a directive that 
60 per cent of all bank shares 


must be locally owned. . 

Another member of the coun- 
cil argued that, although the 
authorities’ policy was - to en- 
courage local banks, the foreign 
banks still managed to win the 
lion’s share of the banking 
business. Greater control was 
needed over the f oreign banks. 

The Minister of Finance 
replied that the government 
would n at interfere in the run- 
ning of foreign banks any 


farther than necessary. Unlike 
neighbouring states, the UAE 
consisted of seven emirates; 
each with Its own financial 
structure. 

The UAE maintained an open 
economy and the government 
wanted that to continue. ’The 
Minister added that foreign 
banks had adhered to the rules 
and regulations laid down by 
the central bank, and there was 
no evidence that any 6 £ them 


was working against the 
national interest •; 

Sheikh. Hamdan. recalled that 
'in 1970, there were 16 banks in 
the UAE, of which only two 
were locally-owned. There were 
now 21 nationally-owned banks 
and 28 from abroad. 

- At tiie end of last year, the 
Minister said,- local- banks 
operated 83 branches, foreign 
banks 139. No new licences were 
being granted to foreign banks. 


Charles Smith, in Tokyo, reports on a striking shift in demand in the domestic car market 


Mazda and Honda challenge Japan’s giants 


JAPAN’S MOTOR industry 
passed a milestone in April 
when a car tint was manufac- 
tured by neither Toyota nor 
Nissan (two giants (hat domi- 
nate the industry) became the 
nations' best-selling model for 
the first time. 

The car is the Mazda Famiiia 
(known in Europe, where it has 
I been outselling most other 
Japanese care for the past IS 
months, os the Mazda 323). The 
Famfti a just managed to edge 
past Toyota’s traditionally top 
selling Corolla with 20,759 regis- 
trations, an increase of 17.8 per 
cent on the April 1981 figure. 

Since Toyota rfaims a 29 per. 
cent share of the Japanese 
domestic motor market, against 
Mazda’s 8 per cent, it is an im- 
pressive achievement- However, 
the FanriUa's success underlines 
what seems to be a fairly 
general -trend in the Japanese 
motor industry today : -the tend- 
ency for exerting and novel 
ideas to come mainly from 
smaller companies. 

A car whose sales perform- 
ance has been almost as spec- 


tacular as that of the Famiiia, 
and which could yet outdo It, is 
the Honda City. Shorter in 
length and stubby, hut unusu- 
ally -tall, this 1.2-litre model 
was launched in November 1981 
and achieved 10^77 registra- 
tions in April, with orders 
reportedly outrunning Honda’s 
ability to produce by 20 per 
cent to 30 -per cent 
The City and toe 1-3 litre to 
1.5 litre Famiiia compete in 
different sections of the 
Japanese domestic market but 
have several important charac- 
teristics in common. Both are 
front-wheel drive hatchbacks, 
whereas the GoroBa uses the 
rear-wheel drive sedan formula 
which first became popular in 
Japan in the m£d-196Qs. , 

Of perhaps even greater im- 
portance, both cars have been 
aimed at the youth market 
(although the two companies 3 
definitions of what they mean 
by “youth” seem to vary 
slightly). Sixty-five per cent of 
this year's Famiiia buyers are 
aged 29 or under, according to 
Mazda, while City buyers are 



The best-selling Mazda Famiiia 


even younger. Honda's publi- 
city build-up of the City as a 
car for young people included 
the use of two pop ' groups. 
Madness and the Beach Boys in 
its television advertising. ' 


Apart from their deliberately 
youthful image, the City and 
the Famiiia' both lay claim to 
outstandingly low consumption 
of fueL 

A further point in common is 
the absence of frills. 

The success of toe FansfHa 


and the prospects for an equally 
impressive sides performance by 
the City (the production capa- 
city of which will rose in August 
from the present marimma level 
of 11,500, to 15,000 models pec 
month) Ss provoking what could 
be a fairly format! able counter* 
attack from the motor industry’s 
giants. 

Toyo Kogyo, the company 
which owns the Mazda brand 
name, says that Toyota switched 
Sis main sales promotion effort 
to the cheapest verson of the 


Corolla from AprH onwards. As 
.a result. Corolla registrations 
just edged back into first place 

Of greater importance is toe 
fart that toe two industry giants 
are now — somewhat belatedly — 
making the switch from rear- 
wheel to front-wheel drive. The 
Nissan Sunny was converted to 
front-wheel drive last October 
and, as a result, scored a 23.5 per 
cent gain an registrations in 
April 1982 over -the same month 
a year earlier. Toyota is 
rumoured to be • preparing a 
front-wheel drive version of the 
Corolla for 1983. 

Neither Toyo Kogyo not 
Honda, are sure how long they 
will be able to bold off tbe 
challenge from the industry's 
leaders^ but Honda at least still 
bas one important card to play. 
. The Cftty is so far being sold 
only oh. toe Japanese domestic 
market Sooner or later it is 
bound to be exported. When 
this happens , it - may well 
become one of .toe most impres- 
sive performer? on toe Euro- 
pean market. 

Italy’s Acclaim challenge. 
Page 6 . 


THE FALKLANDS CRISIS 


Hardliners wait as Galtieri 
walks political tightrope 


BY HUGH O’SHAUGHNESSY , LATIN AMERICA CORRESPONDENT 


THE ROUGH treatment meted 
out to journalists in the past 
two days in Buenos Aires. »m- 
ing as it docs after a whole 
series of threats and imprison- 
ment of foreign newsmen over 
the past month, has drawn 
attention to the character of the 
Argentine Government and 
how it works. 


The seizure, assault and 
robbery of Christopher Jones 
of the New York MetTO-Media 
television channel on Tuesday, 
and the subsequent act of 
dumping him naked in a Buenos 
Aires street, are being seen as 
the work of some organs of the 
government— “mainly because no 
common criminals with any pre- 
tentions to competence would 
seize a foreign journalist within 
100 yards of the Palacio San 
Martin, the seat of the Argen- 
tine Foreign Minister, and one 
of the best-guarded buildings 
in the city. 


Three British TV crewmen 
released by armed kidnappers 
were told by Argentina’s 
President Leopoldo Galtieri 
yesterday that Argentina was 
willing to reach a peaceful 
solution to the Falklands 
crisis, Reuter reports from 
Buenos Aires. 

“We can sit down and talk 
as long as it does not take 
another 149 years," tbe Presi- 
dent told the Britons. 
“Argentina wants to reach 
a non-military solution to the 
problem,” he added. But if 
Britain stepped up its military 
action, Argentina was “pre- 
pared to answer back.” 


Sr Nicanor Costa Mendez, bis 
Foreign Minister— after the 
subtle shift towards flexibility 
in the Argentine negWtating 
position registered at toe week- 
end — that the present leader- 
ship is in danger of being re- 
garded by the ultra-nationalists 
as “soft on Thatcher.” 


The seizure of three British 
journalists from Thames Tele- 
vision on Wednesday in the 
same spot and with the same 
results, appeared to confirm the 
nature of the attacks. 


This, operation also coincided 
with the official expulsion of 
two Norwegians and one U.S. 
journalist, the harassment in 
the presence of the Brazilian 
Ambassador, of a reporter from 
the Sao Paulo daily Gazeta 
Mercantila. and various other 
acts of intimidation against the 
international Press. 


The subsequent disclaimer 
by the Interior Ministry and the 
ostensibly cordial encounter 
yesterday between the three 
British television men and Gen 
Galtieri and Gen Alfredo St. 
Jean, the. Interior Minister, may 
therefore be looked on as one 
of the more bizarre political 
ironies in this Machiavellian 
city. 

The seizure and iH-treatzoent 
of the foreign journalists, and 
the official apologies, suggests 
that the Argentine Government, 
more than most others, con- 
tains elements which are mutu- 
ally hostile and prepared to act 
drastically on their own irrfda- 
tive even if this creates wide- 
spread embarrassment for Gov- 
ernment leaders. 

The common foreign view, 
that Argentina is ruled with a 
rod of iron' by Gen. Galtieri, a 
military dictator who wreaks 
has will like a latter-day Franco 
on a crowded population and 
obedient military machine, is 
a serious misapprehension. 


In fact, Gen. Galtieri has to 
maintain a precarious political 
balance among toe most colle- 
giate leadership of toe senior 
officers of the three armed 
forces. 

He has to play off a navy led 
by a hawkish admiral, Jorge 
Anaya, whose forces have borne 
the brunt of what naval and air 
combat there has already been, 
against a more dovish air force 
commanded by Brig BasiHo 
Lami Dozo, who has yet to de- 
ride the moment to commit his 
forces to battle. 

Each of these services Is div- 
ided into various schools of 
thought. The army is also div- 
ided. as the ousting of the 
popullsticaRy - inclined Gen 
Roberto Viola by the more 
authoritarian Galtieri last Dec- 
ember illustrates. 

Although many of these poli- 
tical differences have been laid 
aside in the operation to seize 
and attempt to keep hold of toe 
Falkland Islands, they remain 

latent. 

Hawkish and dovish officers 
are in constant contact with 
their civilian counterparts, and 
all command enough influence, 
men and firepower to carry out 
their own independent political 
operation. 

Despite accusations recently 
that British intelligence is to be 
blamed for toe kidnappings, 
this week’s drive - on toe journ- 
alists was almost certainly car- 
ried out by intransigent hard- 
liners. 

These hardliners want to 
sharpen toe confrontation with 
the U.S. and Europe and sabo- 
tage negotiations on toe future 
of toe Falklands at their most 
delicate and vulnerable Stage. 

They also want to give a 
warning to Geo Galtieri and 


In a city of rumour, specula- 
tion abounds on who might suc- 
ceed Gen Galtieri, and Gen St 
Jean is toe man most widely 
tipped. But the navy, which has 
always coveted the presidency 
and whose stock has never been, 
higher in toe nation at large, 
would also have its condidate 
for the headship of the state. 

This could perhaps be retired 
Admiral Amelio' Mass era, a 
former navy commander-in- 
chief, who waged a ferocious 
war against the Government's 
opponents in toe mid-1970s and 
is now portrayed as a Social 
Democrat. 



Third World plans 
Gatt move on 
trade sanctions 


BY Utij KHNDtARlA IN GENEVA 




President Galtieri of Argentina meets the British television crewmen who were kidnapped 
and released on Wednesday. The President offered police protection to foreign journalists 
who are in Buenos Aires to cover the conflict 


Britain holds suspect officer 


BY DAVID TONGA 


Outside the immediate 
Government circle, other politi- 
cal forces are on the alert to 
take advantage of any political 
error committed by Galtieri. 

At a rally on Wednesday 
night, the first in three years, 
the Peronists fired their first big 
salvo across Galtieri’s bow. 


Sr Angel Robledo, a former 
Peronist Defence, Interior and 
Foreign Minister, shouted: “I 
am sure of the success of the 
diplomatic battle as long as the 


Government is reminded of ite 
limits, beyond which death with 


limits, beyond which death with 
glory is preferable." 

- Peromsin still represents the 
most potent political force in the 
country, though it is still as 
ever, intellectually incoherent 
and deeply split 

It is a potentially formidable 
adversary for Gen Galtieri, 
particularly if it manages to 
forge links with populist-minded 
officers in the army. 

Less openly and no less effec- 
tively, the orthodox political 
parties,, loosely 3 linked with the 
Peronists in a confederation 
which is effectively led by toe 
Radicals — a middle-of-the-road- 
lower-middleclass part— are also ' 
se ekin g to take advantage of any 
false step by Geo Galtieri. 

Gen Galtieri is thus walking 
on a political tightrope He has 
many military and political 
rivals who are heartily hoping 
that be will be town down by 
toe political and economic winds 
whipping through this embattled 
city. 


BRITAIN Is to continue 
holding Capt Alfredo Astiz, 
tbe commanding officer of the 
Argentine troops captured on 
South George on April 35, 
but has freed the other 188 
prisoners taken then. 

Tbe Foreign Office said yes- 
terday that it had decided to 
hold Capt Astiz “for a few 
days ” following formal 
requests by the Swedish 
and French Governments to 
interview him. The Swedish 
Government wishes to ques- 
tion him in connection with 
his alleged role in the shoot- 
ing of an 18-year-old Argon- 
tln e-Swedish woman. France 
wants to ask him about tbe 
case of two French nuns who 
disappeared in Argentina in 
1977. 

Capt Astiz was head of a 


M training department" iff toe 
Argentine security forces, 
which became notorious for 
its handling of opponents of 
the regime. 

The requests pat Britain 
in a dilemma as, under the 
Geneva Conventions on treat- 
ment of prisoners, those 
detained only have to give 
their name and service 
number. Britain would like 
to help two governments it 
considers friendly, hut Mrs 
Margaret Thatcher, the Prime 
Minister, insisted yesterday 
that Britain would respect the 
conventions. 

A Foreign Office spokesman 
stressed that the other 1SS 
prisoners were being given 
more favourable treatment 
than the conventions re- 
quired, Britain being under 


no obligations to repatriate 
prisoners until hostilities had 
ended. 


The other prisoners taken 
when Britain recaptured the 
South Atlantic dependency of 
South Georgia — 149 military 
men and 39 civilians— were 
handed over to the Inter- 
national Bed Gross on 
Ascension Island, Britain's 
main staging post for Its 
South Atlantic task force. 


They were then flown to 
Montevideo, the Uruguayan 
capital, where they boarded a 
ship bound for neighbouring 
Argentina. The civilians in- 
cluded some of the scrap 
merchants whose landing at 
Giytviken, South Georgia, 
was the immediate trigger of 
the present crisis. 


DEVELOPING NATIONS plan 
later this year to seek amend- 
ments to Article 21 of toe 
General Agreement on Tariffs 
and Trade (Gatt). The Article 
provides the legal justification 
for the trade sanctions taken 
against Argentina by the EEC, 
Canada, Australia and the U.S. 

The main provision al issue 
is the one saying a Gatt signa- 
tory can take “ any action which 
it considers necessary for toe 
protection of its essential 
security Interests." 

The move comes as a result of 
the diplomatic campaign 
Argentina has been waging in 
Geneva against toe EEC’s trade 
sanctions. 

Although a halt to weapons 
supply for Argentina by indus- 
trialised nations is generally 
regarded as Justified, an in- 
creasing number of developing 
countries are taking the view 
that the EEC's rapid imposition, 
of trade sanctions is an over- 
reaction. 

The aim of the amendment 
to Article 21 would be to ensure . 
that countries not involved' 
directly with wars do not take 
sanctions without properly 
explaining the threat to their 
own security. 

The accepted interpretation 
of Article 21 so far has been 
that it can be invoked: by 
countries at war or in response, 
to a United Nations call for 
sanctions. Bat membership of 
a trade group, one of whose 
signatories is at war. is not 
considered adequate reason for 
Invoking Article 21, 

It is also noted by develop- 


ing countries that Article 21 
states that action should affect 
only trade in nuclear materials, 
weapons or other gootte 
v directly or indirectly for the 
purpose of supplying a military 
establishment" . 

Argentina has been arguing 
— and has found sympathy for 
its case — that - trade sanctions 
so far announced cut S2bn 
(£l_lbn) worth of exports, hurt- 
ing ordinary- people rather 
more than - its military 
preparedness. 

But this feeling that toe EEC 
has interpreted Article 21 too 
loosely does not necessarily re- 
flect sympathy for Argentina's 
case over toe Falklands. 

Rather, there is fear that toe 
EEC has set a precedent by 
acting as a bloc to take punitive 
action, through trade measures. 

Moreover, the argument is 
increasingly being heard, as an 
echo of Argentina’s case, that 
toe EEC has shown much 
greater unity on imposing 
sanctions against a weak' 
developing country than ft has 
shown in acting against the 
Soviet Union during inter- 
national crises like the occupa- 
tion of Afghanistan. 

: While these different strands 
of feeling are dividends for 
Argentina's diplomatic cam- 
paign, there is another side. 

This has emerged in resent- 
ment that Argentina, which has 
boasted of its industrial 
prowess and focused its diplo- 
matic attention on the Western 
world, Should now seek sup- 
port for its case in toe name 
of Third Worid solidarity. 


Argentina’s cereal trade faces serious disruption 


BY JIMMY BURNS IN BUENOS AIRES 


ARGENTINA’S crucial cereal 
trade is facing the prospect of 
paralysis as a result of toe 
Falklands crisis. 

Sr Pedro Garcia Oliver, presi- 
dent of the Association of 
Cereal Exporters which prepre- 
seat Argentina’s leading traders, 
warned yesterday that cereal 
shipments were being serionsly 
affected by toe decision of 
Lloyd’s of London to cancel 
certain insurance policies, and 
by toe postponement of all 
further contracts by the Soviet 
Union, Argentina's main trading 
partner. 

In statements published by 
the mass circulation Clarln, Sr 


Oliver stressed the grave 
damage that a disruption of 
Argentina’s cereal trade could 
have on toe country's balance 
of payments: “The problems 
of Argentina’s foreign debt are 
largely dependent on toe 
revenue from, her cereal 
exports.” 

In 1981, tbe value of Argen- 
tina's cereal exports was 
approximately $3.3bn over one- 
third of total exports. • 

Lloyd's recently announced, 
that, beginning on May 24. it 
would cancel policies which 
apply to ships damaged within . 
too exclusion zone controlled 
by Britain. Tbe zone w as 


extended to within 12 rnHes of 
toe Argentine mainland on May 
& 

The Task Force's threat 
applies only to Argentine ships. 
However, most traders in 
Buenos Aires now recognise that 
all shipping, regardless of 
nationality, is now running a 
risk in attempting to approach 
and leave toe Argentine madn- 
land. 

The Soviet Union, which uses 
its. own ships for fuel transport 
to and from Argentina, had 
responded to toe danger by post- 
poning all new cereal contracts 
with Argentina. 

Sales secured eo far cover 


only -an estimated 6:5m tonnes 
of the 15m tonnes Argentina 
was hoping to soil to toe Soviet 
Union in Z982. 

Sr Oliver’s statement yester- 
day was the first public admis- 
sion by Argentina's main 
traders that they were facing 
serious dffficnlttes. 

Sr Guillero Carracedo, vice- 
president of toe Association. of 
Cereal Exporters, confirmed the 
“virtual non-existence ” of new 
sales, and that no . further, 
shipping was ■ scheduled beyond 
toe first fortnight in Juno. 

Argentina had exported 2.7m 
tonnes of pereais in April and 
900,000 .tonnes In toe first. two 


weeks of May. Ships are also 
continuing to enter and leave 
Argentine ports. 

. But. cereals exported from 
Argentina since troops invaded 
toe Falklands on April 2 were 
committed in contracts signed 
on toe futures market months 
ago and do not reflect any new 
sales. 


. According to trade analysts, 
toe contracts signed so far tin's 


year represent only about 50 per 
cent of Argentina’s -cereal'' 


export potential, and leaves a 
potentially severe shortfall, with 
severe - consequences for- toe 
.country's balance of: trade; 


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Financial Times Friday, Max. 14 1982 


AMERICAN NEWS 



Senate calls for 
Reagan to 
revitalise Nato 

BY REGINALD DALE, U.S. EDITOR IN WASHINGTON 

THE . US,. Senate y&icritav 

overwhelmingly backed a res«>- 


" - 1 ’ 


lution calling on President 
Ronald Reagan to launch a 
major initiative to revitalise 
-N.rfo at nest month's alliance 
summit in Bonn. 

The 87 to one vntc was a 
further indication of mounting 
concern in Congress over the 
state of the alliance. 

This coincided with a report 
to the armed services commit- 
tee by Senator Sam Sirnn of 
Georgia entitled: Xato: Can the 
Alliance be saved? 

The Senate resolution said 
that Mr Reagan should urge 
the allies to redouble their 
efforts to: 

• Poo! their defence effort' 
and resources so as lu 
strengthen conventional force*. 

• Establish a “ co-opera ii\e 
defencc-indusinaJ effort " th.if 
would cut costs hy providing a 
larcer production base and eU- 
nunatc unnecessary duplication. 

• Share more equitably and 
efficiently the financial burdens 
as well as the economic bene- 
fits. including jobs, technology 
and trade, of Nato defence. 

Senator Bill Roth, the resolu- 
tion's main sponsor: called for 
a round of high-level nozona- 
lions hcTWeen Xaio governmcn'.s 
to establish a common military 
industrial ba*o that would help 
to standardise weapons and cut 

COf fS. 

He said the negotiai.nns 
should do far defence what the 
Tokyo Round did for trade, with 
the cost Df weapon* system.’* 
increasing so fast that govern- 
ments had to agree on wha*. 
weapons they . needed in com- 
mon to create an " arsenal of 
democracy." he said. 

Mr Nunn's report said that 
the alliance needed major re- 
pair. militarily, politically and 



Senator Roth: arsenal of 

democracy 

Pconomscaliy. This ror. Hired a 
level ‘ 

“ fn- 


of pain veal consensus 
N'jjo iutforru nti ely docs 
no: enjoy today “ 

■■ ?.sip.:ca:ly.‘ the alhance is 
ih disarray over a host of ;>sues 
—a -rii? array ei'itinn; ;n bicker- 
ing .tmting ;nc allies and in 
a ! -ok of ur.'tled responses to 
Soviet iRtorsianoDal r*eb:iviour. 
Cnarge.- and cu-iuiL-r-cnargcs 
are ! ri‘nv:e«iT]y hurleii dcroso the 
Ai the T*port 
V.r N'jr.n called for .1 *«r-ng?.h- 
en:ng of We.- tern conventional 
fcrt’i'j L'ja! itouid .u>iv.v a 
niuiuai EaslAVcr, w::hdrawal 
of ihuiijand u.-.rilclicld 

nui’ie.ir tve..por,s from iJ»*mrnl 
Europe and serisfts cnn-idera- 
’.•on of p Pluvial eommitmeni 
to the noa-Sr?:»«Sf of nuclear 
weapon*. 

Nato should also agree to use 
v.’o.iem financial i me rage, 
■■uch a=. credits and taxes, to 
imlucnue Soviet behaviour, he 
said. 


U.S. Ei Salvador policy 
supported in Congress 

6Y ANATOLE KALETSKY IN WASHINGTON 


THE Reagan Administration's 
Central American policy has 
won Congressional support in s 
scries of votes this week- in the 
House of Representatives 
Foreign Affairs Committee. 

The committee lias over-. 
wheJmingiy approved the 
president’s request for ? 6 Qm 
<£33.79m) of military aid to El 
Salvador for 1983, despite 
vehement opposition from 
liberal members of Congress, 
who had seemed to he in a 
powerful position on the com- 
mittee until recently. 

Earlier in the week, a House 
sub-committee had amended the 
Administration’s request for 
5350m for the so-called Carib- 
bean Basin Initiative. by 
requiring that no °ne country 
should receive more than $73in. 

The Administration had 
intended S128m of the Cano- 
bean money 10 go 10 E! Salvador. 
But. after its victory over 
military aid to El Salvador, the 
State t)eparimeni is con ft 01*11 
of having the Caribbean Basin 
amendment reversed in future 


votes in House and Senate 
commsrtecs. . 

The aJiarp swiiirh in congres- 
sional opinion on Central 
American policy comes despite 
repeated claims from Nicaragua 
that the U.S. is deliberately 
• st-lling cn negotiations to 
improve relation* between Vie 
two countries, and is continuing 
10 foment internal unrest in 
Nicaragua. 

The main reason for the 
ch>B.qc in public opinion, 
reflected in Congress, appears 
to have been the success of 
the elections in El Salvador. 
Libera! Congress members who 
were trying to cur the sum 
requeued by the Administration 
for military* aid. on the grounds 
that the elections »n E! Salvador 
had led to victory for a coalition 
r»f parties on the extreme Righi. 
were !c*!d hy Representative 
Toby Roth, a Republican from 
Wireiinrsn: “ What we'd be 
saying is that, if the people 
don’t elect a left-leaning 
government, then w« shouldn’t 
recognise them." 


Guatemala siege 
awaits envoys 

GUATEMALA CITY — Mili- 
tants who look over the 
Brazilian embassy, and seized 
the ambassador and six oth<*r 
people, were expected yester- 
day to hold their captives 
until three envoys arrived 
from Brazil later In the day 
to negotiate a solution. 

The military regime ruled 
out any other mediation 
attempts’ after the take-over- 
on Wednesday. It rejected 
the protesters’ demands, 
which included a negotiat- 
ing commission of diplomats 
and Guatemalan civilians. 

The militants said they 
were protesting against re- 
pression hy the Guatemalan 
government. There was no 
violence after the take-over. 

Reports indicated that the 
hostages wcer being treated 
well. One female embassy 
employee was released after 
suffering a nervous attack, 
officials said. 

A statement dropped by the 
20 or so militants from a win- 
dow referred to “massacres, 
torture, rape and burning of 
crops and ranches ” by govern- 
ment security forces 
AP 


Rise in Kennedy 
popularity 

SENATOR EDWARD KENNEDY 
would defeat President Ronald 
Ke jpan by 5! to 43 per cent it 
a Presidential election were 
held now. according to a Gallup 
Poll published in die U.S. yes- 
terday. writes nur L r .S. editor in 
Washington. 

Mr Walter Mondale. the for- 
mer Democratic Vice-President, 
v. mi in run even with Mr Reagan. 

The pul I via- 1 he first 10 show 
a clear marum of public dis- 
approval i/m -Mr Reagan’s 
handling of the Presidency, 
wita -13 per ceiu approving and 
47 per een! disapproving. Last 
October, when a big majority 
approved of Mr Reagan, he led 
Senator Kennedy by 5B 10 35 per 
cent. 


• Peso curb ruled out 

! MEXICO CITY — President Jose 
’ Lopez Portillo of Mexico, has 
, ruled out currency controls, d^s- 
= pitc v.har he said was an un- 
j pat ro lie rush to exchange pesos 
[ for dollars. 

j Speaking to reporters. Sr 
| Lopez said his estimation of the 
! real value of !h«? peso was about 
J 40 to the dollar, instead of the 
j currenl exchange rate of 46. 

I Reuter 


Science illiteracy fear 

BY OUR WASHINGTON CORRESPONDENT 




EDUCATION IN science and 
ma l hematics has reached such 
a “ deplorable state ” in the 
l T .S. that the nation's mili'iiry 
and economic security is 
threatened. President Ronald 
Reagan said this week. 

His statement was made in a 
written message to a conference 
on education organised hy the 
National Academy of Science*. 

Mr Frank Press, 1 he academy's 
president, said there was a 
danger of “raising a new gene- 
ration of Americans that is 
scientifically illiterate." 

Mr Caspar Weinberger, 
Defence Secretary, echoed This 
concern in person and suggested 
that the military establishment 


could find 11 difficult to keep 
up with the Soviet Uninn 
because of <* growing shortage 
of scientists and engineers. 

Mr Terrel Bell, the Secretary 
of Eduejfion. told the con- 
ference that the preoccupation 
with equably had led to a sacri- 
fice of excellence in education. 

He said that state and local 
education authorities should 
con-rider establishing specialised 
science secondary schools, 
increasing science requirements 
in all schools and introducing 
differential pay scales which 
would pay science and mathe- 
matics teachers— who ore in 
short supply— more than 
techers in surplus subjects. 


Canadian 
Ministers 
deny shift 
in policies 

By Victor Mackir in Ottawa 

THE CANADIAN Federal 
Cabinei Mmi.*:vrx aiicmplud to 

counter -‘.uggi-Mions dial lilt* 
iiOVrrAmcnt j.* .sfnfii/i>; i!s 
emphasis from fighunt; 1 nib lion 
to countering tmetnpluymeni, 
in a !iea»«*tl !:uu:~- uf Cmmnon:, 
debate on Wednesday night. 

The suggestions -That Oilawu 
might seriously be eonsidenni* 
changes to i 1 -. econuiuic polu-icx 
—changes ih.11 would lower 
•nteresi rales hut also drive ihe 
dollar down — .sent .1 shock wave 
through ihe financial com- 
munity. 

Bui Mr Jcan-Luc F'-pin. acting 
Prime Minister during Mr 
Pierre Trudeau's absence at the 
funeral of roving driver 1 lilies | 
Villmeuic. read ,1 si a I c men 1 
from Mr Allan MacEaehen. the 
Minister of Finance, ihn-t "no 
dvva/uatiun of I fie dollar is 1 
being coniemiiinicd.’’ 

In respon-e lo Opposiiion 
questioning, Mr Pepin anti Mr 
Pierre Bu-.sicre*, Mmi*u-r of 
Stale for Finance, also •* cate- 
gorically” denied ihat the 
Government was considering 
imposing foreign exchange con- 
trols and »-jid tliere was no 
question of imposing wage and 
price controls. 


Bid for World Bank fund to by-pass U.S. 


BY MAX WILKINSON, ECONOMICS CORRESPONDENT, IN HELSINKI 


A FUND to channel aid to 
the Third World was pro- 
posed yesterday m response 
lo the U.S. failure 10 pay its 
fall coniribntlun to the World 
Bank's soft loan arm. the 
International Development 
Association (IDA i. 

The proposal was made hy 
French delegates qr ihe Inter- 
national Munciary Fund and 
lVorld Bank fonference in 
Helsinki, after Mr Turn 
Clausen, Hie hank's managing 
director, told its development 
committee that ihe IDA faced 
a funding eri&U. 

This stems front a refusal 
hy (lie U.S. Cojigress to 


authorise payment of the full 
$3.24hn (£ 1.771m) ihe t'.S. 
wxs due tu cunirihuie ti» the 
agency in Hie three years 
ltlRI-S3. The U.S. is expected 
to derer payment of more 
than $!hn uf the contribution 
for at least a y ear. 

IA 

By internal Iona! agreement, 
the U.S. contribution repre- 
sents 27 per cent of the total 
funding uf the IDA. Many 
other countries have seemed 
likely to reduce their contri- 
butions in proportion. 

The French hq-.e proposed 
that a special fund, 
administered by the World 


Bank, should be set up paral- 
lel to the present IDA and for 
broadly the same purpose. 

Countries would pay into 
this new fund the difference 
between the contributions 
they originally agreed and the 
reduced toiMribiitions result- 
ing from the U.S. action. 

One of the main pnints or 
the arrangement would be 
tiiai only tho»c countries 
which cnnjrjbutcd lo flic 
special fund would he eligible 
to hid for contracts in the 
appropriate aid programmes. 
U.S. industry would therefore 
be excluded from a subsiaji- 


tiai slice of Third World 
developments. It is hoped 
that the exclusion might 
generate political pressure 
within the U.S. for previous 
levels of aid to he restored. 

M. Philippe Jurgensen. 
deputy director of the French 
Treasury, said the special 
fund could help tide Ihe IDA 
over in 1334, if the next 
round uf contributions were 
delayed until the next year, 
lie .said World Bank officials 
were now studying the French 
plan and u ould prepare 
detailed propusuis In put tO 
other nations about a mouth 


from now. 

lie hoped the special fund 
might attract contributions of 
perhaps SI bn to S2hn in 19S4. 
Tin* IDA's annual disburse- 
ments are about -S3Un. 

Mr Clausen told the World 
Bank's development commit- 
tee that there was an urgent 
task In aciivau* the next 
round of IDA funding hy 
1981. However, he said: "In 
the midst of the crisis today, 
it is perhaps too easy lo over- 
look the fact that the donor 
countries have also been hit 
hy adverse economic condi- 
tions.* 1 


Hungary hopes to increase borrowings from West 


BY OUR ECONIMICS CORRESPONDENT IN HELSINKI 


HUNGARY IS hoping that its 
formal admisMon 10 ihv Inter- 
national Monelary Fund in 
Helsinki 111 IS Week will enable 
it 10 make a subblantui increase 
tu Us borrowing* from the WV-.r, 
now standing at aliuui &3bn 
(l’4.4bnj. 

51 r J.wu* Vekete. cfi-puty 
governor of the .National Bank 
of Hungary, said >e*ierday he 
believed nteiubi-r-liip of the 
fund and ns eennuime surveil- 
l.tnce would tncrea-e hi- coun- 
try’s credit worthiness in ihe 
internal ional capital nurkels. 
He Imped ii would also bolster 
ihe confidence uf oilier central 
hanks. 

However, Mr Fetch* Said 
there were no nmuediaie plans 


to make an appIicaLun to the 
IMF for a loan. 

"Wlicit you have jus: been 
admitted to _■ chib the tir>r shiny 
to do ix io wipe tour shoe*. You 
don’t ilmiiedialel - . pui uurt Jour 
hand for a loan." be s.i:d. 

The uuuia .ill ue.it i-».l !,» !Iun- 
gari by the IMF S SDR 375m 
ifjfi ami. 

EeeaitM* of the -h.idew cast 
by the diflivultie* of r-eiiedul- 
ins Fuiish and Romanian deb: 
ar.tl ihe trouble. :n Faiand. -iie 
How of We* tern loans to Hun- 
gary hqjt dried up recently. 

The Hungarian* are clearly 
hoping that member*ii:p o: The 
fund will underline the differ- 
ence between their economic 
policies and lllO-e Of Millie df 


liieir Comecun neighoour.*. In 
pari ii'ular. l ne couni ry .hopes 
:hai :j;e Hungarian c.T.p!'.:<i- on 
finar.Aj] Uu-cipline ami sngrke! 
inei.hani.-ULS will be e::ipha-;*ed. 

Fund uSlualh - 1 1 ge- 1 rti 

ye-!ei-tJav that a “ reiciin-ly 
*;i 1.. J I '■ IMF loan llii^ir. he nt 
haled wi:!i l lunar y f-iriy <Juun 
" tu Miipl-aMse :i;3T A iiaS now 
joined the family." 

•June sine: condi: ion- ;voi:ld 
be attached :o sucii a loan, us is 
liie usual pracnce of ;be li!J*. 
anu 1 It is wuuiti be :he mean* by 
winch 11 vvotilU he hoped to 
a: 1 rai't additional lending from 
the commercial or renirai 
liqnks." 

Mr I'fke'e would no: be drown 
on any detids j>a: vaid:. "Y/e 


will borrow as much as rhey will 
lend — oq the right terms of 
Course." 

lie fully agreed with the 
recent IMF a.--es*mvnt of ihe 
Hungarian economy, including 
I lie* more cruicai passages in The 
repo;!. "I could llaVe signed 
it rujtotif," be said. 

A: a Pres* conference follow- 
ing the conclusion of llic IMF's 
interim committee meeting, 
Mr Jaque* de Larosiere. manag- 
ing direeior of rbe fund, said 
there had been agreement 
unions all participant* about 
the general ihrust of countries’ 
ecutioDUC policies. 

Triere was a common view 
amony the le*s developed 
euunti'ies as well as indii*iriai 


powers that "we have got 
to get riil of thi.* stagflation 
phenomenon if we are to get 
grow Hi oil a sustained ha sis.” 

There had heen discussions 
aiiout the correct balance of 
fiscal and monetary policies 
needed for this, blit he added: 
” Uf all want interest rates to 
go down, but no «»n»? has pro- 
posed that Tu achieve lower 
iniereM rates there should be a 
relaxation of monetary policies." 

In spue of suggestions 
before the Helsinki mepring 
that some hard line countries 
led by the U.S. might seek to 
curb the fund’s lending activi- 
ties. the interim committee 
dearly endorsed its present 
course. 


People who rent cars 
don’t always go to Avis. 



We often go to them. 

Provided you’re within five ^7 miles or so of an Avis office, we could 
saveyou the trouble ofawasted journey 

Instead ofyou coming to us, we will happily come to you. Allyou do is 
pickup the phone and leave the rest to us (the London number is 01-245 9862). 

Most of the time, the service won’t cost you a penny extra. 
AndwemakesureyourAviscarhaspassedanexhaustive43pointcheck 

before you’re allowed bemnd the wheel. 


Butin the unlikefyevent ofyou 
emergency service you can call on. 

When it comes to looking 
after you, no other car rental 
company goes out of its way as 
much as Avis. 


; ever needing it, we have a 24 hour 









6 


Financial Times Friday May 14 1982 

WORLD TRADE NEWS 


Italy challenges Acclaim’s origin 


French in Indian teleconununications deal 

BYX.K. 5HARMA IN NEW DSJHI 


BY PAUL CHEESERIGHT AND JOHN GRIFFITHS 


THE ITALIAN authorities have 
demanded further detailed docu- 
mentation about the origin of 
the Triumph Acclaim car, made 
by BL under licence from Honda 
of Japan. 

The demand carries the 
implicit threat that the Acclaim 
will face further difficulties in 
entering Italy unless the docu- 
mentation is provided. Last 
month Acclaims were held up 
at the Italian border, setting off 
a sharp diplomatic exchange be- 
tween London and Rome. 

BLis considering the demand, 
but yesterday denied reports 
that it has been presented with 
a deadline of the cod of this 
month by which to comply. 

It is believed in London lhat 
the Italian authorities are 
blatantly using bureaucratic 
procedures to make BL sales in 
Italy difficult, on the grounds 
that the Acclaim is a Japanese 
not a British car. 

Entry delays during April 
■were ostensibly caused by t v: 
irregularities attributed to Ley- 


land Italia, BL's Italian sales 
company. 

These problems were resolved 
and the Acclaims were released, 
following pressure from both 
the UK Government and the 
European Commission. 

The Italian authorities are 
then said to have demanded 
from BL certificates of origin 
for the Acclaim. Such certifi- 
cates. issued by the Birmingham 
Chamber of Commerce, were 
reluctantly supplied. 

BL said yesterday that the 
EEC certificate of origin docu- 
mentation it was now being 
asked to complete in fact re- 
quired less detail than that fur- 
nished in the Chamber of 
Commerce document. 

Even so, it may well feel that 
to comply with the latest Italian 
move erntid drag It info a series 
of escalating demands. 

On that basis, it is likely to 
refuse and await the conse- 
qi"*nces. 

The request for new docu- 
mentation is therefore seen as a 
new step in the harrying of BL. 


It comes against the background 
of Intense discussion about the 
validity of the Italian claim 
that the Acclaim should not 
have free access to the Italian 
market 

This claim is based on an 
assessment that the -Acclaim's 
British content is less than 60 
per cent, not enough to give it 
British designation. Italy per- 
mits the import of only 2,000 
Japanese cars a year. 

BL has said that the Acclaim 
is 70 per cent British. *'by ex- 
factory price." 

The UK Government's case, 
conveyed to the Italian authori- 
ties and evidently supported by 
the European Commission, rests 
on a 1968 EEC regulation. 

This states that a product's 
origin is in the country where 
the last substantial manufactur- 
ing process took place. 

European Commission officials 
visited the Cowley plant, where 
the Acclaim is made, and on 
April 16 saw the manufacturing 
process. They are understood 


to have verified that the Acclaim 
is of EEC and not of Japanese 
origin. 

The British Government 
further charges that the Italian 
demands for proof of origin are 
unwarranted and lhat the only 
criterion for origin Is that laid 
down in the 1968 regulation. 

Any move by the Italian 
authorities to restrict Acclaim 
entry could influence the car’s 
sales elsewhere on the Conti- 
nent. 

BL hopes to sell 15,000 
Acclaims on the Continent in its 
first year — it was launched 
there two months a«o — and 
demand is reported to he high. 

The Italians are believed to be 
using the Acclaim as a test case 
in advance of further expected 
deals between Japanese and 
European producers. 

It would also have same bearr 
ing on Alfa Romeo’s plans to 
make a joint car with Nissan in 
Italy and on the long-delayed 
decision by Nissan on setting up 
a manufacturing plant In tSxe 
UK. 


Fine tuning fails to quell fears on Japanese imports 

BY GILES MERRITT IN SAIT-SYMPHOR1EN-LE-CHATEAU 


THE Indian Government is to 
award the contract to build a 
factory manufacturing elec- 
tronic exchange equipment to 
the French company GET 
Alcatal 

CTT Alcatel has won the con- 
tract in the face of competition 
from 10 telecommunications 
companies from - various 
countries including Britain, 
which offered its System X, its 
first advanced electronic tele- 
phone exchange. System X 
has never won an export order. 

The French won largely 
because their system has been 
successfully tried by many 
countries and "because of a 
highly attractive financing 
package fo rthe deal. The con- 
tract is worth about FFr lbn 
(£91 .4m). 

Fifty per cent of this will be 
financed by low Freneh Govern- 
ment export credits and the 
remainder through loans on 
-commercial terms. 

A letter of intent on the con- 
tract has been signed hv the 
Indian Government after the 
French agreed to an average 
Interest rate of 7.5 per cent 

This clinches the matter just 

Gandhi 


a few days before the May IS 
deadline for raising of interest 
rates to 16 per cent by all Euro- 
pean countries — one reason for 
the early signing of the letter 
of intent 

Also thought to be Involved 
is a down payment of about 
10 per cent of the total price 
to France. This will not be 
refunded if the deal is'. later 
countermanded. 

This is one reason why CIT 
Alcatal will probably get the 
entire " package Involving 
modernisation of India's 
obsolete telecommunications 
system. 

'This includes the initial 
supply of 200.000 local ex- 
change. lines which will be 
operated by the most modem 
type of digital exchanges, using 
computers and data communica- 
tions. 

The French technology, 
coded E-10, is to be transferred 
to India. . . 

Britain’s major bid to win the 
first exports for System X thus 
seems to have failecL_ 

Last January, Mr - Kenneth 
Baker. British Minister for 
Information Technology in the 


WORLD AIRCRAFT 


Industry Department, accom- 
panied by Sir George Jefferson, 
chairman of British Telecom, 
visited India to explain the 
advantages of System X. But 
the offer was not accompanied 
by sufficiently attractive, credit 
terms. 

Apart from the manufac- 
.turing programme involved in 
the factory contract, the'French 
company of Sofrecom is expec- 
ted to be asked to ; do the main- 
tenance and operations work. 

This will also make ' the 
existing mechanical system com- 
patible with the new digital 
system. 

The new factory is likely to 
be set up at Hosur in Tamilnadu 

The Government has also 
accepted the French offer for 
expansion of the Palpal unit of 
the Indian public sector tele- 
phone industry (ITI) to. manu- 
facture electronic exchange 
equipment for about 150,000 
lines a year. 

The new factory at Hosur will 
be managed by a. new public 
sector company to he : known as 
Hindusthan Telecommunica- 
tions Industries. 

So far tfie deal does not in- 


INDUSTRY 


dude, .the setting up of a 
second new factory for the 
.manufacture of the electronic 
exchange equipment of the 
same capacity of .500,000 lines. 

Existing tenders from ten 
companies for this project — 
including Britain's System X — 
are still valid. 

But it seems unlikely that 
India will accept two kinds of 
technology for electronics tele- 
communications. 

It is more likely Ghat the 
French will also get the con- 
tract for this factory. 

India has recently been giv- 
ing major turnkey projects to 
foreign companies if they can 
offer suitable financing pack- 
ages involving a mixture of 
government grants and com- 
mercial loans. 

It is on the basis of these 
that Britain won the contracts 
for a l.5m tonne steel plant 
in Orissa state and a super 
thermal plant at SingrauU in 
Uttar Pradesh. 

These contracts are now be- 
ing discussed and efforts are 
being made to sign them by 
May IS. 






AS THE :wo preliy JapaneTC 
ioierpre ers stepped out into 
the s: fvo*!l around l':i.? 

Ifi;h cc-:ury Chateau d'Eseli- 
inom nc?r Chartres. ?n '■ mer- 
er n row *7 *per reporter brekt* 
off h's c'ofS qi cf'ionin" cf c 
kre— ’ Vfhc-h'c r ' T 'C Eurocrat to 
c? ' e'.i them t:p. 

'•V'V. h' the 'ti-'s. 

we-e the n’.rl r'^ncec of 
••fine •ii- 5 -’?” - '-'ch they Ini 
earlier trrnshtied from .lapar.es*' 
when interpreting for Mr 
Shir'aro AM. Japan's Inlvr- 
nrM : n”?! Trodo T<l Tnd”S{ry 
'*■ ■ r’ been spe’h- 
i-«- (i-*i ** f—rtruJo* :rel " 

tr.-dr nr-' "" *"'-vern Jnpan. 
'he r ‘ e r "'C - r:l Cmari^. 
v.-’ii-n ,, - , s jift ended here. 

It v.-5>s a question which 
spe , : n ncch of the growing 

j n ft (ftp J?EC 

a^d the U.S. vith the subtleCes 
of lanevagc in a political dia- 
logue -hat has remained incon- 
rJijsivo frr eight years or more. 
It « , ’’d so until* ng. too. for the 
that increasingly 
r-h' ,r " ,n: erises trade talks such 
as this. 

Th«* nmi fine, tuning had been 
used hv Mr Abe to describe the 
which thr 
.Tana T »"‘5'' Government will 
shortly nronnsn for combating 
the non-tariff harriers lhat are 
still Frti tn deb'-d the Jan»n<?«r* 
rtnm' , siir from IT. S. and 

EFC manufactured goods. 

It turned out that the terra 



Mr Shin taro Abe. Japan’s 
International Trade Minister 


means the same in Japanese as 
in English: in other words it 
ml '•hr mean very little. 

For the suspicion is that 
although Japan has pledged it- 
self to announce a second wave 
of liberalisation measures with- 
in a fortnight or so. to rein- 
force those introduced in Janu- 
ary concerning 67 products, 
none of these steps will satisfy 
political pressures in Europe 
and North America for protec- 
tionist moves to stem Japan’s 
exports. 

The focus for such pressures 
is now likely to be the June 5-6 
Versailles economic summit. 


gronplng the heads of govern- 
ment of the U.S.. Japan, West 
Germany, France, Britain, Italy 
and Canada. 

' Unless Japan's forthcoming 
imports package is so far-reach- 
ing as to draw the teeth of the 
protectionists, the risk is that 
trade frictions will create a 
rift between Mr Zenko Suzuki. 
Japan's premier, and the other 
Versailles summiteers. 

That, in turn, could produce 
a green light for protectionist 
action against Japan. 

That Japan's liberalisation of 
import procedures and harriers 
is unlikely to make much differ- 
ence to its booming trade sur- 
pluses — S10.5bn (£5.76bn) at 

least with the EEC last year and 
S18m with the U.S. — is well 
known in Brussels and Washing- 
ton. 

Yet attempts to wring genuine 
self-restraint from Japan on its 
exports of sensitive enetnepring 
and electronics goods have 
lareely failed. 

The quadrilateral meeting 
here has underlined the point. 

Originally mooted last year 
as a trilateral forum grouping 
Japan, the U.S. and the EEC. 
which could discuss Japanese 
disruptions of trade without 
U.S.-EEC fears of provoking 
■“ deflections ” of ' Japanese 
goods across the Atlantic, the 
new approach has already come 
close to being a talking shop 
rather than a discussion. Its 


very informality guarantees its 
power. 

The first session of the quad- 
rilaterals, in which the original 
three were joined by Canada, 
took place in Key Biscayne, 
Florida, in mid January this 
year. 

Even though it was empha- 
sised that Key Biscayne was 
not a negotiating session as 
such, Mr Abe’s declaration then 
of “ drastic ” action to open up 
Japan’s markets suggested the 
informal talks had performed an 
important role. 

That impression was not re- 
inforced, though, at the second 
session of the quadrilaterals 
that bas just taken place. 

Japan's own difficulties, in the 
shape of an overall payment 
deficit that has soared to 
approaching SSbn in the year to 
end March, from $3S0m in 
1980-81, and growing agricul- 
tural and industrial opposition 
to import liberalisation, are an 
important new factor. 

They help explain why the 
quadrilateral talks have this 
time not emerged with greater 
credit 

For the fact that Mr Abe 
could only offer sketchy details 
of the new measures had the 
effect of making the talks 
redundant 

Or. more accurately, a forum 
for veiled threats. 


shops for 
U.S. arms 

By Our New Delhi Correspondent 

THE Indian Government has 
revived interest in buying 
arms from the UJS. Prelimi- 
nary talks have been held on 
the purchase of the F-5 air- 
craft made by Northrop 
Aviation Corporation. 

Other Items on the shop- 
ping list an Howitzers and 
tube - launched, optically- 
guided. wire-controlled mis- 
siles known as "Tows.” 

Interest in these onus 
comes just before Indira 
Gandhi, the Prime Minister, 
is to visit Washington for 
talks with President Reagan 
from July 29. 

India had first examined 
U.S. weapons in Oetober 
1980 when a high-powered 
defence mission visited Wash- 
ington. But fbe deal never 
went through because of U.S. 
terms which. In addition to 
the high price, included the 
right to eat off sapnlies. 

This was particnlarly dis- 
tasteful to the Indians, who 
are being deprived of 
enriched uraninm for the 
U.S.-bnilt nuclear power 
station at Tarapsr 


Second-hand jet market swells 


BY MICHAEL DONNE AND (RANK. GRAY 


THE CRISIS which yesterday ment sales programmes of the than the more recent models 

halted Braniff International’s major manufacturers.' Nevertheless, they are stiil 

flights will aggravate a prob- Ifi Britain, the collapse of eminently usable 

lem already seriously worrying Laker Airways in February put Since a new off-the-Iiae 747- 

the world's major aircraft three, new European Airbus 200 can cost up to $75ra, a 

manufacturers— the swelling a-S00s and 10 McDonnell- TriStar in the region of 540m, 

volume of wide-bodied jets Douglas DC-lOs on the market, and a DC-10 about 340m, it is : 

either up for sale or grounded. Declining aircraft sales were clear that an airline looking for 
Even before the Texas-based expected to. have been aUev- wide-bodied equipment will be 

airline’s latest problems, bank- iated with the decision by the' able to pick up good second- " y?' 
ing institutions and used air- Lockheed Corporation last Dec- band bargains. ’Air- 

craft agencies on both sides of ember to cease . production by Used airliner prices quoted in _.c. v 
tile Atlantic were estimating the 1984 of the Rolls-Royce powered recent months, for -example, % r Tg ^--r 

size of the wide-hodied second- TriStar. With only 244 units indude 325m for a Boeing 

hand market at 150 aircraft at sold in 10 years -and the overall 747-100, with proportionately 

least — mainly Lockheed Tri- outlook poor. Lockheed decided lower rates for the older 

Stars, McDonuell-Douglas DC-lOs to Cut its losses and leave the varieties of TriStars and DC-1 Os. 

and Increasingly Boeing 747s. market open to the remaining ‘ One feature of the market in e»>. 

In addition, used European Air- big three— McDonnell-Douglas, recent months has been the sale 

bus A-300s are beginning lo Boeing and the European Air- and leaseback of existing equip- p. 

enter the market. bus consortium. • • ment. ; y- 

Their estimate may be Ironically, other manufae- The size of Ihe used aircraft 
modest. Industry officials say turers are not benefiting from market has prompted Citibank V 

that major carriers normally do Lockheed’s decision. The cor- of. the U.S. .to set up_a separate . 

not advertise their saleable porat ion’s move appears only divisnon to. handle loan applies- 

equipment, preferring to rely to have prodded many TriStar tions by airlines buying used : 

on industry contacts to find operators into cancelling their equipment. Midland Bank . 

likely purchasers. remaining options or adding International of the UK. the - 

Regardless of how Rraniff’s their existing TriStars to the targest British lender for financ- . 

future is resolved, the volume world's burgeoning fleet of ing new aircraft, mainly Air- 
is likely to grow. Many airlines grounded aircraft. buses, says Jr. too. will have 

are under mounting pressure to The aircraft on the ground to look at used aircraft finance -- 
shed excess equipment, which in are mostly at least 10 years old In the future as older A-300s 

turn weakens the new equip- and therefore less fuel efficient enter the used market. 



Gulf Air is proud to announce yet 
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Konishiroku Photo Industry Co., Ltd. 

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DM50,000,000 

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WESTDEUTSCHE LANDESBANK 
GiROZENTRALE 


NOMURA INTERNATIONAL LIMITED 


THE NIKKO SECURITIES CO., 
(EUROPE) LTD. 


MITSUBISHI BANK (EUROPE) &A. 


SANWA BAIflC (UNDERWRITERS) 
Limited 


Atoh# Bank of Kuwait OC&C.) 
Algernon* Bank Nodariorxf NX 
Amro International 
Limited 

Juius Baer International 
limited 

Banea Commwtiale ttaSana 
BaneadeiGattardo 
Bar* of America International 
Limited 


Akliengesetechaft 
Bank Leu international Ltd, Nassau, Bahamas 


Bank oTEoksro International 
limited 


Banqun BnunOea Lambert SJL 


Banquo G6n6rale du Luranbourg 

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Banquo de Neuffee, Scfriumbeiger, Uaffat 
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Banquo Poputallra Subae SJL Luxambourg 
Banque de IIMon EurepAenna 


Bayerische Hypothekan- und Wechsei-Bank 
AktnnseseHscftatt 


Bayerische Landasbank 
Girozentrale 


Bayerische Verafnatmk 

AJrtfengesefiscftsft 

Joh. Berenberg, Gosster& Co. 

Bergen Bank A/S 

Serilner Handaf»- 
und Frankfurter Bank 


Chase Manhattan 
Lamed 


Christiania Bank og Krwatkasaa 
CIHcorp In ternati o na l Group 

Goromerzbanlc 

AktienoesaHscftaft 


County Bank 
limited 


CNtfltenatett-Bankmrabi 
Crhat Commer ci al da franca 
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CrorStSutsaaHrrt Boston 
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DaWi*i Kanoyo lotamatloate 

1 hnilait 


BANQUE INDOSUEZ 
Banque de llndochim et de Suez 


CREDIT LYONNAIS 


MORGAN STANLEY INTERNATIONAL 


PIERSON, HBLDRING & PERSON NX 


J. HBIRY SCHRODER WAGG & CO. 
Limited 


Dahwa Europe 

Limited 


Richard DatB A Co. 
Bankjers 


Deutsche Bank 
AWiengeseilscfaft 

Deutsche Ghozentrale 
- Deutsche KtunmunaUunk - 
DGBank 

Deutsche GonoKt e na ch aftabank 
DUon, Read Overseas Corporation 

DomMon Securities Ames 
Limited 

DraednerBark 

Akbenge&eilschaft 

Effectent»nk-Warhurg 
Aktiengeseilschait 
EuremobiHare &pJL 
European Arab Barrie 


European Banking Company 
Limited 


PdS International Finance 
Limited 

Gbruantrale und Bank 

derdsterretchischenSparfcaBBen 

Aktiengese&chaft 

Qokftnan Sachs International Corp. 


HanrMsbank NJk (Oversea^ 

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HasstscheLandasfaank 

-Girozentrate- 


TTn Hongkong Bank Group 


bidustriebmk non Japan (Dautacfriand) 
AfctiengesBtisdhafl 


Istituto Bancarkr San Paolo efi Harino 


KkSder, Peabody IntemaUotari 
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K W nwort, Benson 1 
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Kredtotbank SJL Luxembourgealsa 

lOiwaft ForaignltaKfog, Contracting 
A Investment Co. (5AK.) 

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l^wfestMBikRbaMand-Prafa; 

- G ko z ewnrio- 


Lahman Brothers Kuhn Loeb Asia, tec; 


Lloyds Bank faitomatlond 

Untitsd 


LTC8 international 


SWISS BANK CORPORATION 
INTERNATIONAL LIMITED 


Uanufactunrs Hanover 
Limited 

McLeod Young Web International 
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Merck, Rack A Co. 

Menffl Lynch Inte rn ati o nal & Co; 
B. Metzter seeLSahn A Co. 


Mitsubishi Trust & Banking 
Corporation (Europe) SJL 


Samuel Montagu A Co. 
Limited 


Morgan Grenfell A Got. 
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Morgan Guaranty Ltd 
National Bank of Abu DhaM 
Nippon Credit International (HK) Ltd. 
Nomura Europe GmbH 
NorddeutBcheLandesberric - 
Gtroaentrato 

SaLQppenheimJr.&Cia. 

Orion Roy^ Bank 

Limited 

N.M. Rothschild & Sons 
limited 

Schrader, Mun chm ayer, Hangst A Co. 
Skanrrinavlsk»EnslcildaBankeb- 

- Smfth Barney, Harris Upbam A Co. 
incorporated • _ ' 

SodatriOfadrafa 

Socttte GUnAndadeBMiqua SJL . 

Sumttomo Finance tate t i atUanal 
Su mhu moTroattcrtaniatfcmal 
.■Umtted 

SvenskaHanddsbanfcan - 

Tim Tbj^ Kobe Bank (Luxambourg) SJL 

Tbkai KyoM MorgaaGrenfaB 


YHnkaus A Burkhantt 
Vemine-ondW satb «>lg ' 
AktiengeseOschatt 
J.VontobdACo. 

IlM, WHtar^Bftedkman^Mfttz £ Qv 
. S-G. Warburg A Co.Ud> 

WssttBAste 

limtted 


A 

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i'Y Vi 



YbmaicM Wtemaftonar(Baopa) 
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z picRSC^ 
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sS"* 6 * .... 
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■^L 


The Pan Am Worldport^ at J.F.K. International Airport, New York, where you'll find domestic and international flights under, one roof. 


Have you ever got off one plane in 
Newark to catch another one to another 
US destination and had the feeling that 
you were walking half way there? 

PanAmunderstandshowyoufelt. 
And we promise that you'll never feel 
that way again when you fly with us to 
the USA. 

ForweVe designedan entire build- 
ing just to make your life easier, the 
Pan Am Worldport at JFK 

A short-distance 
walktoyour 
onward flight. 

AtthePanAmWorldport,every de- 
parting domestic flight is planned with 
your arriving international flight in 
mind. (And vice versa.) So when you 


From Worldport 
you can experience 
Pan Am to 
all these US. cities. 


Miami 
Los Angeles 
San Francisco 
Washington DC 
Houston 
Detroit 

Dallas/ 

Fort Worth 


Honolulu 
New Orleans 
Orlando 
Pittsburgh 
Atlanta 
Tampa/St. Pete 
Tulsa* 


m a.icj&’a!* air w-tfs 

. ■wt.-.-s.wi tnkuL 

-- Ti 1*111 * * 






the Pan Amterminal,1928.It all began here . 


bort worm Oklahoma City* 

‘from June 1st 

get off one plane, it's just a few steps to 
walk to the other one. 

Our schedules, too, are arranged 
for your convenience, not our conven- 
ience. If you do have a short wait, and 
you're a First Gass or Clipper® Gass 
passenger, you can spend it in the com- 
fortable First Class lounge. ^ 

Here you can leave your hand ^ 
luggage in a safe place while you fm 
have a coffee or a drink at the bar. ^ 


There's peace and quiet too, so you can 
catch up on work or simply relax. 

When you arrive from Britain, 
Worldport has another surprise for you. 

U.S. customs are 
custom-made for 
Worldport customers. 

The US customs and immigration 
facilities are not far from your gate. They 
serve Pan Am passengers, so you don't 
have to wait in the queue for very long. 

After your luggage has been pro- 
cessed through we'll take it back from 
you and put it on your onward flight. 
Then, once again, you just walk a 

few steps to the gate 

for your plane. °rSSSSS^ 

Pan Am London 01-409 0688 

iAlCicUl ^ J " L L Birmingham 021-236 9561 

Worldport at T. F. K. is Manchester 061-832 7626 
11 S C 1.x. t, a Glasgow 041-248 5744 

all part of the Pan Am Prestei 215747 

experience. 

And all of us at 

Pan Am are confident y ?f \ 
that once you have 

experienced the ^ 

ease of changing flights and cities 

without changing terminals you 

N/ won't change airlines. 














o 

o 


Financial Times Friday May 14 .1982 

UK NEWS 


Personal 



Barclays reversed a major policy decision 


By Eric Short 

Sales of personal pension con- 
tracts remain buoyant follow- 
ing; tax concessions given by 
the Chancellor of the 
Exchequer in recent years. 

Figures issued yesterday by 
Life Offices’ Association. 
Associated Scottish Life 
Offices and the Industrial Life 
Offices Association showed 
that actual premiums on per- 
sonal pension contracts in- 
creased' by 19 per cent In the 
first quarter from £3 2m to 
£2Sxn, while single premium 
payments advanced by a 
quarter from £49m to £62m. 

Steel output fails 

Steel production in Britain 
averaged £09,300 tonnes per 
week in April, a reduction of 
5.7 per cent on the March 
figure which was 3.9 per cent 
down oo the February rate. 

However, production in the 
first four mouths of the year 
averaged 314.900 tonnes per 
week, 8l7 per cent Siigber than 
in tile corresponding period 
Of 19S1. 

3SC redundancies 

BRITISH Steel Corporation Is 
making redundant op to 250 
of the 1,000 workers at its 
Crcigncuk works in Strath- 
clyde. 

The complex, which consists 
of a melting shop, foundries, 
forge, bar mills and machine 
shop does specialised work 
and suffered lossis of £1.5m 
last year. So far 100 employees 
have volunteered for 
redundancy. 

High rates complaint 

UNREASONABLY high rates, 
badly maintained roads and 
pavements, and unsatisfactory 
police action when assistance 
is needed are among the lead- 
ing complaints which a 
“significant minority " in the 
UK have about their neigh- 
bourhood. according to a 
National Consumer Council 
report published yesterday. 

The report is based on a 
survey of nearly 2,WM) people 
carried out by Research 
Services between November 
1979 and November 1980. 

GLC co-op grant 

THE Greater London Council 
has given a £3,000 grant to a 
cooperative being set up 
following the closure of Lee 
Cooper leans st Harold Hill. 
Essex. The co-operative, run 
hy 12 ’Yemen, is called Poco, 
and will make children's 
clothing. 

Petrol storage move 

Petrol can he stored in plastic 

, containers from June 4 under 
new regulations announced 
yesterday. However, the con- 
tainers mast be specially 
made for fuel and not exceed 
5 ...litres. Previously only 
metal ^containers could be 
used. 


"IT DOES ’NT surprise me that 
they have woken up to 
customer demand. It surprises 
me that they have resisted 
customer demand for so long." 

This was the reaction of Mr 
Clive Thornton, chief general 
manager of the Abbey National 
building society, to the decision 
by Barclays Bank to open 400 
branches on Saturday mornings 
in the autumn. 

Mr Thornton has reason to 
be sarcastic about the Barclays 
move. It is his backyard into 
which Barclays is marrhing. 
Saturday backing represents a 
direct challencc to the building 
societies, fuelled by Barclay’s 
desire to tap some of the 
deposit base which the building 
societies have been courting so 
effectively. 

At Barclays Bank. Mr John 
Quinton, senior general man- 
ager, did not equivneate about 
the meaning of the Saturday 
openings: “We cannot afford to 


sit back and watch business 
taken from us by the building 
societies and other financial 
institutions." 

Mr Quinton made clear that 
the aim is to secure new 
deposits. "Deposits are our life- 
blood and wc need a further 
infusion. We believe that 30 
per cent of building societies' 
funds are paid in on Saturday 
mornings," he explained. 

To prove the point Barclays 
noted that as at December year 
building society deposits 
totalled £56.4bn against the 
banks' £41-2bn. 

Barclays even admitted that 
its 1909’ decision to close on 
Saturda/s had been a "bad 
mistake " and “ a blunder." 
Why. then, has it taken so long 
to realise this? 

Mr Quinton said the climate 
of opinion had changed in 
recent years. “During the 1970s 
we hoped our cash dispenser 
network would solve our prob- 


Alan Friedman tests reactions 
to a return to Saturday banking 

THE MAJOR UK CLEARING BANKS 


Total branch 

NatWest 

Barclays 

Midland 

Lloyds 

Williams 
& Giyn's 

network 

Number of new 
current accounts 
last year 

3000 

2,981 

X45Q 

2,300 

311 

£net gain) 
Personal balances; 

200,000 

200,000 

ISO, GOO 

250,000 

3X000 

Deposit accts. 

£4.1 bn 

£43bn 

* 

* 

£340m 

Current accts. 

£2.1bn 

£2bn 

* 

* 

£l«Jm 


* Lloyds and Midland declined to provide this information. 


Jems. This is now a reversal of 
policy." 

In the past there have been 
several arguments from Bar- 
clays against opening on Satur- 
days. The bank staff associations 
and unions bitterly opposed the 
idea because of the unsocial 
hours. A number of Barclays 


managers were not convinced 
that the potential gains would 
outweigh the costs of staff and 
overheads — estimated at about 
£5m extra a year. 

By building up a network of 
through-thewall cash dispen- 
sers, it was argued, the bank 


could service its customers over 
the weekend. But machines only 
dispense cash {although they 
could be programmed to accept 
deposits! , they break down and 
remain broken until Monday — 
and they don't provide the 
essential personal tou*h- 

Barclays wants to sell its pro- 
ducts, ranging from current 
and deposit accounts to 
mortgages and personal loans. 
"The cash dispenser network 
doesn’t sell a damn thing. The 
machines just sit there In the 
wail and look at you,” explained 
Mr Brian Pearse. a Barclays 
general manager. 

Mr Pearse reckons that by 
opening on Saturday mornings 
for two and a half hours (9.30 
to 12) Barclays Bank will 
increase the net number of 
current accounts opened per 
year from 200,000 to about 
300,000. At other banks this 
estimate was doubted. 

Reactions to yesterday’s 
announcement suggested that 


Natwest, Midland, Lloyds and 
Williams and Glyn’s may not 
rush to follow the Barclays 
lead. 

Both Midland and Natwest 
said they had conducted re- 
search two years ago which 
discouraged them from Saturday 
openings. Midland plans to 
continue developing -its Auto- 
hank cash dispenser network, 
from 360 machines now to more 
than 700 late next year. - 

At Natwest .Mr Charles 
Green, a general manager, said 
the bank came to a “very firm 
conclusion’' two years ago that 
opening on Saturdays would 
not attract enough business to 
compensate for the costs. 

These statements notwith- 
standing, it would not be 
surprising if other UK banks 
did eventually follow the 
Barclays example. They will 
first watch and judge ~ the 
success of the Barclays pro- 
gramme. If it is profitable they 
will jump in as welL 


Union officials raise storm of protest at lack of consultation 


BARCLAYS BANK’S plan to re- 
introduce Saturday opening in 
about 400 branches, reversing a 
decision taken by all the English 
High Street banks 13 years ago, 
ran into an immediate storm 
of criticism from the two unions 
representing SO per cent of its 
70.000 staff. 

Mr Eddie Gsle, general secre- 
tary of Barclays Group Staff 
Union (BGSU), with 40,000 
members, 52 id he was “ out- 
raged" by the lack of consul- 
tation. Both BGSU and its TLJC 
affiliated rival, the Banking. 
Insurance and Finance Union, 
representing 15,Q00 staff, were* 
told only shortly before the pub- 


lic announcement 

Neither expressed immediate, 
formal opposition. However, Mr 
Leif Mills. Bifu general secre- 
tary, said: “ We are firmly 
opposed to widespread Saturday 
opening. The proposals I’ve 
seen so far £ wouldn't find 
acceptable.” 

Barclays will offer staff the 
option of signing separate con- 
tracts to work agreed numbers 
of Saturday mornings, in addi- 
tion to their five day, 35-hour 
week. 

The bank is not offering to 
negotiate its plan with the 
unions, but intends to discuss 
terms with them. It is believed 


Barclays is not offering to negotiate over its plan to 
open on Saturdays,, but workers’ leaders are expressing 
firm opposition to giving up the gains made 13 years 
ago, reports Brian Groom. 


payments could be £20-40 for a 
9.30 to noon period. A clerk’s 
basic weekly pay ranges from 
roughly £55 to £160. 

Barclays has taken soundings 
among staff and believes if the 
price is right it will have no 
difficulty in getting the volun- 
teers it needs — no more than 
4,000 each Saturday — to run the 
limited service planned. It will 


invite back retired staff if 
necessary. 

What it risks is badly souring 
relations with the unions, which 
were both yesterday flooded 
with- telephone calls from acti- 
vists hostile either to the pro- 
posals or to the lack of con- 
sultation. 

The bank said its decision 
was taken on Monday and that 


it had been discussing the idea 
with local head offices for only 
two months. In addition to 
commercial confidentiality, how- 
ever. it may have chosen not to 
involve -the- unions until now so 
that it had the maximum public 
support as a counterweight to 
union hostility. 

This choice could backfire. 
Mr Jack Britz, general secretary 
of the Clearing Bank Union — to 
which the BGSU is affiliated— 
said yesterday: “ This has 
proved to the hllr our feeling 
that the banks are on a con- 
frontation course with the 
unions." 


Bifu wants to shorten the 
working week, not lengthen it. 
Mr Mills said he appreciated 
the sharp competition in the 
finance sector, but Barclays 
would find Saturday opening 
expensive and uh worth while. 
He felt it would lead inevitably 
to compulsory Saturday work 
because in the long term there 
would be insufficient volunteers. 

Bifu’s conference last month 
agreed to discuss six-day open- 
ing, but only on the basis of a 
four-day, 28-hour week for staff. 
Leaders did not envisage it 
applying ; widely to clearing 
banks. 


Tootal moves thread HQ to U.S. 


BY ANTHONY MO RETON, TEXTILE CORRESPONDENT 


TOOTAL, ONE of the big four 
British, textile companies, is to . 
transfer the headquarters of its 
threadmaking operations from 
Manchester to the U.S. 

The move is part of Tootal’s 
rationalisation, which has been 
going on at least 18 months. Tills 
operation was largely- respon- 
sible for the doubling of pre- 
tax profits to £14.85m' ln the' 
year to the end of last January.' 
after failing heavily in 19S0. 

The move is interesting 
because it involves the head- 
quarters of the most important 
part of the group. Threads 
accounted for 54 per cent of 
Tnotal's trading profits (before 
tax and interest charges! last 
year. Although the contribution 


from Tootal’s American Thread 
subsidiary was important, it was 
not considered completely satis- 
factory. 

Tootal has been Increasingly 
looking at its operations especi- 
ally thread production, from an 
international standpoint It is 
believed profits could be im- 
proved still further if the 
American operation was more 
integrated within the company. 
. The transfer of the head- 
quarters will' not lead to any 
further redundancies in Britain. 
In the past three years Tootal. 
which has been badly hit by the 
textiles and clothing recession, 
has reduced its UK workforce 
from around 20,000 to some 
9,500. 


The only people involved in 
the move will be a few senior 
staff. Mr George Hilton, chair- 
man of the thread section — 
which has operations in 
Australia, Hong Kong, Indonesia, 
Malaysia, South Africa, Nigeria 
and the Philippines — will cer- 
tainly move to the U.S. 

It has still not been decided 
whether he will be based at the 
Stamford, Connecticut head- 
quarters of American Thread or 
in New York. American Thread’s 
production facilities are dis- 
persed around the U.S. 

It is not envisaged that 
Tootal’s other divisions, recently 
reorganised as individual com- 
panies will be affected by the 
change. 


Polyethylene prices rise 10% 


BY SUE CAMERON 

BRITISH chemical companies 
have launched a new round of 
polyethylene price increases in 
a desperate attempt to stem 
mounting losses on their plas- 
tics operations. 

Shell'Chemicals UK yesterday 
said it w as raising the price of 
Its low-density polyethylene 
(LDPE). which is used in the 
making of packaging film, by 
around 10 per ceDt. This will 
lake its LDPE prices to between 
£450 and £475 a tonne depend- 
ing on the grade of material, 
night Shell Chemicals 


also warned that it needed to 
push up prices by a further 30 
per cent to prevent more losses, 
and even then would not neces- 
sarily be making an adequate 
return on its LDPE operations. 

The initiative in trying to 
force up LDPE prices was taken 
by BP Chemicals which in- 
creased its charges by 10 per 
cent last month, followed by 
Imperial Chemical Industries. 

ICI said yesterday it was con- 
fident the 10 per cent price in- 
crease would hold up in the 
market, place. But, like Shell 


Chemicals UK, it stressed the 
need for further rises. Id said 
prices needed to rise to around 
£550 a tonne— an increase of 
about £100 a tonne — before pro- 
fit margins would be anywhere 
near adequate. 

Nearly all west European pro- 
ducers have been making sub- 
stantia] losses on their plastics 
businesses, partly because of 
the recession and partly because 
of a chronic overcapacity in the 
industry. Some companies, in- 
cluding the German-based 
BASF, have now started to close 


Alumax not 
to bid for 
Invergordon 

By lan Rodger 

ALUMAX, the U.S.-Japanese 
aluminium group, will not 
make an offer for the Inver- 
gordon smelter closed last 
year by British Aluminium. 

Mr Pierre Gousseland, 
chairman of- Amax, the U.S. 
metals group with a 50 per 
cent stake in Alomar. said in 
London yesterday that the 
group had looked at Inver- 
gordon bat decided not to bid. 

The Scottish Office, which 
has been assembling an offer 
on power charges for 
interested parties, was sur- 
prised to hear of the decision. 

It said: “The package was 
due to be put to the parties 
soon. We would have ex- 
pected them to wait before 
making a decision.” 

British Aluminium closed 
the smelter in December 
because of high power costs. 
It agreed, however, to keep 
the smelter in working order 
until the end of Jane to give 
the authorities time to seek 
another operator. 

On Wednesday Mr Alex 
Fletcher, a Scottish Office 
Junior minister responsible 
for industry, said the Govern- 
ment would meet its electri- 
city-price objective for 
Invergordon hy direct state 
support, not by a charge on 
other Scottish electricity 
consumers. 


Subsidiary of U.S. group 
acquires six hospitals 


BY RAYMOND S NODDY 

HCA UNITED KINGDOM, the 
wholly-owned subsidiary of 
Hospital Corporation of 
America, said yesterday it had 
paid £14m to acquire a majority 
interest in six private UK 
hospitals. 

They are owned by Seltahart 
Holdings, the hospital company, 
and Y. J. Lovell Holdings, the 
construction and property 
group. 

The deal gives the U.S. com- 
pany its first private beds in 
Britain and is part of a major 
move into the UK private 
health-care market. 

The hospitals are the Clare 
Park at Farnham, Surrey, and 
the Fuiford Grange at Leeds, 
and a soon-to-be-completed 
hospital at Solihull. Three other 
hospitals, at Southend, Brent- 
wood and Blackpool, are under 
construction. 

Construction is also about to 
begin an a £5m, 100-bed hospital 
for HCA at Southampton. The 
company said recently it would 
seek planning permission for a 
£7m private hospital In Edin- 
burgh. HCA owns and runs 368 
hospitals world wide, most in 
the U.S.. and last year had 
revenue of $2fibn (£1.37bn). 

Dr Ronald Marston. chairman 
of HCA, said yesterday the 
acquisition formed an integifl 
part of HC.Vs planned commit- 
ment to the UK fo provide 
quality health services to local 


communities where they were 
desired and needed. 

The move involved HCA 
.acquiring all Seltabart’s shares 
and -available shares held by 
Lovell. Some shares have to be 
offered to consultants holding 
about 10 per cent of the equity 
in individual hospitals. 

Mr Alan Pilgrim, financial 
director of HCA United King- 
dom. said HCA would secure 
between 70 per cent and 90 per 
cent of shares in the hospitals, 
depending on the extent consult- 
ants took up share options. 

The deal means Mr Peter 
Townsend, chairman . and 
founder of Seltahart. will resign. 
His new company, Bioplan, will 
co-ordinate completion of the 
three hospitals. Bioplan will 
provide high-technology services 
to the private medfcai sector. 

Lovell sold its minority 
interest in the hospitals for 
£1.4m, for a continuing consult- 
ancy involvement and for re- 
payment of outstanding loans of 
£600,000. It will continue as 
contractors for hospitals under 
construction. 

Lovell believes private 
medicine offers potential for 
diversification. It is having 
talks with other parties for a 
new 58-bed hospital in the 
South East. 

HCA’s proposal for a 76-bed 
hospital in Edinburgh is likely, 
to be opposed by health service ' 
trade unions. They are against 
the growth of private medicine. 


Pac-Man 
takes up 
the Invader 
challenge 

By Colin Inman > 

SPACE INVADERS watch out, 
Pac-Man is coming to eat you 
up. 

That at any rate, -is the hope 
of Atari International, whose 
' latest video computer game 
was launched ami d consider- 
able U-S.-style razzmatazz 
yesterday. ' 

Pac-Man is, in the words of 
Atari’s John Constantine: "A 
lovable yellow creature who's 
been eating his way Into the 
hearts and homes of 
America." 

Pac-Man, described as the 
"hottest item in the video- 
game market ” in the U.S., is 
a little yellow figure who 
moves about a sort of maze 
and scores points by gobbling 
up video wafers, power pills, 

- vitamins and ghosts. The 
longer you can keep him aliye 
the more points you score ?f 
he eats all the video wafers 
he gets another life. But he 
can be destroyed by the 
ghosts, and can only eat them 

- if he- has first eaten a power 
pill. 

A skilled Pac-Man player can 
keep the game going for its 
full 15 minutes, totting up a 
points score of several 
thousands. The assembled 
hacks and others at yester- 
day's launch at the London 
HOton were invited to take 
- part in the UK Pac-Man con- 
test the winner to be awarded 
not only an Atari video com- 
puter system but the oppor- 
tunity - to compete in an 
international contest with a 
first prize of a trip to the 
next space shuttle launch. 
Not surprisingly, journalists 
from the technical press were 
best at this and the sight of 
ODe competitor scoring well 
over 3,000 points was enough 
to discourage novices. 

The lunch that followed was 
notable for its adoption of an 
American hard sell approach. 
Mr Constantine, Atari Inter- 
national's acting managing 
director, pointed out that 
Atari had over the past five 
years seen “the fastest growth 
recorded hy any American 
company in history" and ex- 
plained why it had decided to 
set up its own UK company. 
Another Atari executive scored 
no marks at all for saying that 
Pac-Man “ appeals to all the 
family, even the ladies." a re- 
mark that drew a barrage of 
-hisses from, the liberated 
multitude present 
But as watchers of TV ads will 
realise, there -is no doubt 
about Atari's commitment to 
Pac-Man, tghich it intends to 
be just as big a smash hit in 
the UK as it is in America 
Prime TV time has been 
. booked for 35 weeks and the 
game will bewidely adver- 
tised. Pac-Man is the latest 
addition to a range of games 
that includes Pele-Soecer, Mis- 
sile Command. Asteroids, 
Warlords and Super Breakout, 
as well as Space Invaders. 

Is Pac-Man really so much better 
than the myriad other video 
computer games now on the 
market? A rash of lawsuits 
over copyright infringement 
in the UB. suggests that its 
popularity is no flash in the 
pan. 



fr Michael optimistic about BL 


BY KENNETH GOODING. MOTOR INDUSTRY CORRESPONDENT 


A ' CHEERFUL Sir Michael 
Edwardes. making his final 
appearance as chairman at BL’s 
annual meeting, claimed yester- 
day ihaf the group "now has the 
essential ingredients in both 
products and attitudes across 
the company for a suecessiul 
and ultimately profitable 
future." 

He told shareholders ihat 
losses were running well below 
those of the same period last 
year and it remained "an am- 
bitious but achievable target" 
for BL to contain this year's 


trading loss to the level of the 
firs? half of 1931. 

That would indicate a trad- 
ing loss of £143m this year 
against £244.6m in ISS1. 

As restructuring costs in 1982 
will He substantially "reduced, so 
should the net loss of £497m 
recorded last year. - 

Emphasising that BL was 
attempting a recovery pro- 
gramme against the background 
of “almost traumatic situation 
in the western motor industry," 
Sir Michael cited the following 


favourable trends 
© BL's cash flow was well 
under control and well within 
the limits agreed with the 
Government: 

© the 30 per cent productivity 
increase last year compared 
with 19S0 had improved by a 
further 23 per cent in the first 
quarter of 1982; 

0 in the first quarter of this 
year BL's total vehicle sales 
were 6 per cent higher than the 
same period of 1981; 

0 exports in the first three 


months had risen by 23 per cent 
in value from last year's level 
and BL forecasts a £l00ra in- 
crease in ihe full 12 months 
from the £884m achieved in 
1981; 

• For 1982 the group expects 
production and sales worldwide 
to be at last year's level in spite 
of “ a further meaningful man- 
power reduction." 

Questioned by shareholders 
about rumours that major asset 
sales were to take place. Sir 
Michael insisted that "the 1982 


plan does not envisage any 
early sale of any part of the 
business." But this was re- 
viewed annually. 

Sir Michael also made it dear 
that he would not stay on after 
the end of this year even if 
asked. ‘I have enjoyed nothing 
as much in my life ns ttie last 
four and a half years. But there 
is no doubt that currency 
diminishes in value and I think 
it would be counter-productive 
for me to be here beyond the 
end of this year." 


Swan National tapes its views 
on cuts in Ford car prices 


lit 


AA. finds 36% of company cars ‘clocked’ before private sales 


BY JOHN GRIFFITHS 

UP TO 36 per cent of former 
company cars may have been 
** clocked " — their milometers 
turned back. — by the time they 
reach their new private owner, 
-according to an investigation by 
tile Automobile Association 
magazine. Drive. 

J'.-The statistical sample on 
■which Drive reached its conclu- 
sion-— with the help of the 


Department of Transport com- 
puter at Swansea — was small, 
but coincides with the unofficial 
estimates of Trading Standards 
Officers. The Office of Fair 
Trading previously estimated 
that 200,000 " clocked ” cars are 
sold each year. 

The AA provided the maga- 
zine with a random list of 37 
cars, their registration numbers 


and mileages at the time they 
were dropped from the associ- 
ation's 900-car fleet 
Swansea provided the names 
and addresses of the current 
registered owners, although 
Drive could trace only 28. Of 
these, 10 found that their cars’ 
milometers had been turned 
back by a minimum of 20,000 
miles and a maximum of over 


50,000. 

Trading Standards officers 
estimate that every 10.000 re- 
duction in recorded mileage 
adds an average £100 to the 
retail “value" of a car, says 
Drive. 

Mr Noel Hunter, secretary of 
the Institute of Trading Stan- 
dards Administrators, has 
passed on to the Government a 


number of proposals to deal 
with the problem through the 
OFT. They include legislation 
which would require tamper- 
proof odometer fittings, revised 
registration documentation, and 
the compulsory licensing of 200 
auction houses in the UK. 
Drive estimates 70 per cent of 
used car traffic passes through 
these houses. 


BY JOHN GRIFFITHS 

SWAN NATIONAL has sent a 
taped message to its 400 main 
leasing outlets setting out the 
“ true situation ” of cuts in the 
list prices of new Ford cars. 

Swan National is a large car- 
rental and leasing company 
wbidh buys 9,000 vehicles a 
year. The message is from Swan 
National Leasing's managing 
director, Mr Ian Mosley. 

He says the cuts are “much 
less than at first appears, al- 
though one can hardly blame 
Ford for putting a certain attrac- 
tive, cosmetic veneer on the 
price cuts to put themselves in 
the most advantageous light." 

He said much of each cut con- 
sisted of higher specification, tile 
value of which was added to the 
actual price-cut " to give the 
most attractive publishable 
figure — and of course you 
wouldn’t normally have taken 
the highest specification." 

Mr Mosley quoted the example 
of the new Granada 2.8 Ghia X 
with an advertised price-cut of 
£3.300. “In fact this had an 
extra * free ' specification valued 


at Dearly £2,500." 

By the same measure the true 
price-cut on the Escort Ghia was 
not £677 but £453. 

The effect on the price even- 
tually payable by customers was 
further reduced by the cut in 
the dealer margin from 184 per 
cent to 17 per cent, giving 
dealers less room to manoeuvre 
on discounts. 

The effect on Swan’s leasing 
operation, for example, was that 
“ it erodes the* price reduction 
available for us to distribute to 
our customers. The discount 
available to us has been cut by 
as much as 10 per cent” 

When both factors were con- 
sidered. “taking as an example 
the Escort 130GL five-door, the 
proclaimed £84 price cut con- 
s-ists of £70 due to the lowei 
dealer margin, £7 to the mar- 
ginal reduction on car tax, 
leaving us only £7 to distribute 
in the form of lower rente]." 

In other examples "the true . 
cut on the Escort 1.8GL is not * 
£171 but £69; the Granada two- 
litre not £350 -but £195, the 


Granada 2.8GL not £711 but 
£456," 

Mr Mosley, however, said the 
cuts were “ real in a great many 
casps." 

Allowing for the knock-on 
effect of reduced used-car resi- . 
dual values caused by the party 
cuts, months rental reductions 
would range from marginal on 
the Fiesta range to £15 on the 
Granada Ghia X. 

Mr Mosley said an associated 
effect of the price-cuts would be 
to raise rental costs of cars pro- ... 
duced by rival makers. 

Other makers have indicated 
they will not so act, implying 
Ford was simply rolling back 
previous price rises which had 
met buyerresi stance. 

Mr Mosley's assertion is based 
apparently on the conviction - 
that lower residual values for : 
Fords will drag down residuals 
of similar models from other 
makers. 

He says rentals of the Hover 
range, for example, might have 
to rise by as much as £10 a 
month. 


Reliant aims to fill ‘big market gap’ for small sports cars left by volume producers 

John Griffiths looks at a specialist’s rationalisation plans 



’RELIANT MOTOR, the Tam- 

■ worth-based speciast car maker, 
- is- -abandoning all attempts to 
] edropete with the volume car 
! manufacturers. 

Alternative strategies, allied 
! with further major job cuts and 
.'.cost-saviog measures in the past 
i 12-months, are responsible for 
' toe . .substantial turn-round in 
’Reliant's fortunes disclosed in 
the interim results. From a 

■ £l.Q4m . pre-tax Joss in 1981, 
• made worse by an extraordinary 

debit of £624.000. Reliant is 
expected to at least break even 
..this year. The six-month loss 
was cut from £597.000 to 
£&4,m. 

r ’ But Reliant's replacement for. 


the Scimitar executive sports 
and estate cars, designed by 
Bertone, which would have 
been powered by the Rover VS 
engine, has been halted. No 
compensating investment'' is 
planned for the Scimitar itself, 
which will continue to be linilt 
— curriently at a rate of thre-or- 
four a week — only as long as 
there is demand. 

The same applies to produc- 
tion for the UK and Europe of 
the Kitten. Reliant's venture 
into four-wheeled economy cars 
to supplement its three-wheelers 
— still the backbone of the 
business-launched in 1974. 
Kittens are being built . in 
batches of 25 at irregular 


intervals when enough orders 
have been collected. 

Instead. Reliant is concentrat- 
ing in the UK on building 
vehicles in sectors u on which 
the volume manufacturers have 
turned their backs,” according 
to Mr Ritchie Spencer, the man- 
aging director. It is further 
developing sales of production 
technology to Third World and 
other markets, and expanding 
its engineering and related 
activities, part of which 
involved the recent establish- 
ment of a plastics subsidiary, 
Reliant Industrial Mouldings. 


One major aspect of the stra- 
tegy is expected to be the 
launch in two to three years of 
a light sports car, using 
Reliant's existing. 850 cc alu- 
minium engine and incorporat- 
ing much of the plastics tech- 
nology used in its plastic-bodied 
Rialto three-wheeler. 

The concept, using the 
Reliant power train, has 
already been tried by an inde- 
pendent designer— a project In 
which Reliant was not directly 
involved— and even though 
heavier than the ear Reliant 
believes it could produce, was 


capable of more than 50 mpg 
with a top speed of over 90 
xnph. 

Mr Spencer says there is: "a 
big market left for small sports 
cars. It doesn’t suit the volume 
makers, but the potential 
volume is 30,000 cars a year.” 

The company believes that if 
such a vehicle could be sold for 
£5,000 to £5,500 at current 
prices, it would fill a large gap 
left toy BL with the ending of 
MG Midget and Triumph Spitfire 
production. ’Forget, the macho 
types, you've only got (o look 
at the number of secretaries ami 


air hostesses driving around in 
ageing MGs and Triumphs to 
realise that the market does 
exist," says Mr Spencer. 

Mr Spencer, 39, formerly per- 
sonnel director of Sunderland 
Shipbuilders, became managing 
director of Reliant in late 1977 
after JF Nash Securities took 
a majority shareholding (the 
motor company was separated 
from Nash last year). He says 
he is deeply pessimistic about 
prospects for much of the UK 
specialist car industry.. 

In the £10.000 to £13,000 
bracket in which the Scimitar 


competes, “ the volume makers 
have become just too damn 
good. People do want oars that 
aren't run of the rmB, but their 
cost has gone up enormously. 
The Scimitar replacement would 
have cost £15,000 to £16.000. I 
don't think people are prepared 
to pay that much. 

Later this year, Reliant hopes 
to begin UK sales of the Fox, 
a lightweight fun utility pick-up 
based on the Kitten developed 
originally for Greece. It was 
built by . MEBEA and .Reliant 
provided up to 1,000 kits a year. 
Exchange rates have tailed this 
business, but Reliant Is .finding . 
other markets, including Bar- 
bados. 


Major export potential Is also 
seen in its links with Turkish 
vehicle manufacturer Otosan. 
Reliant has been the supplier . 
Of the kits for its Anadol model 
for some years. Otosan's produc- ‘ \ 
tion has been as high as 12,000 - r 
a year, though Turkey's econ- \j 
omic difficulties have reduced 
this to 3,000. But Reliant is , 
developing a new car. the FWH, < v . 
for Otosan to build from 1983, 
output is planned to eventually 
reach 20,000 a year. 

in the UK the launch of the 
Rialto three-wheeler repl ace * 
ment for ihe Robin has .led w ' 
a. 25 per cent increase in out- i • 
put, to 75 vehicles a week. 


9 




M 


5? 


Financial Times Friday May 14 1982 


UK NEWS 



Oil and gas exploration slackens Conoco BCal wins Los Angeles route 


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8Y RAY DAFTER. ENERGY EDITOR 

TIE PACE of oU and gas 
xpiorariua drilling on the UK 
.ontinental Shea has slackened 
■» recent months, in sharp con- 
rj.vi io the real of Europe. 

The trend is highlighted in 
new report by consultant 
SafTney Cline and Associates, 
‘Inch riles North Sea od taxa- 
.ton as a factor behind the drop 
a UK exploration activity 
• The company's index of L’K 
Epl oration drilling has fallen 
•n a bom one-fifth of lire] 977-78 
-oak, buck lo the level of last 
..ulumn. On tby other hand, 
European exploration activity 
-ut*ide Hie UK has more than 
iiouLled m Hie past year. 

- Mr Tom Cox. managing 
_i rector of Gaffney. Cline, said 
yesterday that UK tax changes, 
animated in Ihe March 



Budget, bad provided "liltle to 
encourage the oil companies.” 

This was particularly so to 
areas containing .small, economi- 
cally marginal fields, where 
profitability might have been 
reduced. A decrease in expjora- 
(ion drilling might be exepelcd 
in an oil producing region, such 
as the UK Continental Shelf, 


where marginal or near- 
marginal fields were most likely 
to be discovered. 

But the UK Continental 
Shelf, particularly the North 
Sea. still appears to be pro- 
viding encouraging exploration 
drilling resuta. Well* drilled 
in recent months show a rela- 
tively high average .success 


ratio, some three rimes* higher 
than m the rest of Europe on an 
indexed ' basis. 

In control to the exploration 
activity, the index for overall 
UK drilling work remains high, 
rcllccting Ihe emphasis on 
development and appraisal. The 
drilling index has reached 112.fi 
— a&tinsi a 1970 base of 100— 
and is now at a near-record 
level. Total drilling activity ha* 
remained high for the past IS 
months. 

'ilie index far field ex pint ra- 
tion work has also remained 
steady, although at a lower level 
— about SI per cent of the 1977 
base period figure. And there 
are stuns Thai the index of con- 
struction expenditure has 
flattened after more than a 
decade of steadily ri.\ ins value*. 


contract 

awarded 


BSC steps up search for new markets 


. BT MAURICE SAMUELSON 

CALLING ORDERS for the UK 
offshore oil construction Indus- 
ry arc forcing the British Steel 
Corporation to step up its 
search for new overseas mar- 
vels i or it* heavy steel plates 
inti pipes. 

■ BSC Plates, which is run as 
t separate business within the 
.‘urporntion. has a good order 
jouk fur tins year but is uncer- 
tain about next year's orders 
' 'or ihi 1 Norih Sea and has been 
■joking for new business as far 
ifii'lil^ >s Australia, Indonesia 
ind Canada. 


lx was set up a year ago as 
pan of Mr l*n MacGregor's 
policy of deceni rail sing the 
corporation. It employs 4.000 
people in six plants in England, 
and Scotland and ha* a turnover 
of about £300m a year, but is 
not expected to become profit- 
able until next year. 

Under its managing direct nr, 
Mr Jim Mackenzie, it is supply- 
ing 70 per cent of the .steel 
hems; used for the UK Con- 
tinental Shelf. 

Its order book includes- steel 
fur the British Gas Corpora- 


tion's Mum-mu be Bay and 
Rough Fields and for Statot!, 
the Norwegian national oil and 
gas company. 

Delays in authorising ihe 
British Gas Corpuralion'* gas- 
gathering pipeline have dis- 
appointed BSC Plates since the 
pipeline was one uf the factors 
behind (he decision to establish 
it in the first place. 

Although it has the eapacity 
to roll and sell more than ltm 
tonnes of heavy plate, it is 
producing only 1 m tonnes a 


Denning blocks $160m 
U.S. damages claim 

BY RAYMOND HUGHES. LAW COURTS CORRESPONDENT 


THE COURT of Appeal has 
blocked a SUfiOni damages claim 
made in a U.S. court against two 
.companies in the Smithklinc 
drugs group. 

Lord Demtirtg said yesterday 
an excuse had been round io 
'make the claim m a Pkiladel- 
phi a court because of the 
: ** fabulous ” damages that U.S. 
juries were prone to award. It 
also meant -the claimant could 
. take advantage of the American 
system under which lawyers did 
not charge for their services but 
took 40 per cent of any damages 
. awarded. 

That, said Lord Denning, was 
an illegitimate advantage- The 
claim was made by a man living 
and working m England, it con- 
cerned an English contract made 
with an F.nglish subsidiary of 
the group, and the English court 
was the natural forum in which 
to deal with iL 

He granted Smith Kline and 
French Laboratories, and its 
U.S. parent. Smith Kline Cor- 
poration. an Injunction slopping 
Dr Maurice Bloch proceeding 
with his claim against them in 
the U.S. 

Lord Denning said that in 
1974, Dr Bloch, a drug research 
clinician, licensed Smith Kline 
and French, Laboratories to ex- 
ploit worldwide a drug he had 
invented for treating stomach 
complaints. 

In 19SU the company decided 
that the drug was unlikely to be 
a success and ended the licence 
agreement. 

Although it was an English 
contract with an English com- 
pany. Dr Bloch's American 
lawyers had used the fact that 
the company had an American 
parent as an excuse to sue in 
the U.S. 

-As a moth is drawn to the 
light, so is a litigant drawn to 


the United States.” said Lord 
Denning. *Tf he can only get. 
his case into their courts, he 
stands to win a fortune — at no 
cost to himself and at no risk 
of having to pay anything to the 
other side." 

The U.S. courts had said that 
Dr Bloch could proceed in 
America and had made an in- 
junction to stop Smith Kline 
Corporation going to tiie 
English courts. The English 
High Court hod made an injunc- 
tion ordering Dr Bloch not to 
proceed with his litigation in 
the U.S., against which he 
appealed. 

There was thus a regrettable 
conflict of jurisdiction between 
the U.S. and English courts, 
said Lord Denning. 

In his U.S. action Dr Bloch 
claimed $40m damages for 
alleged breach of contract; S40ra 
for alleged false representation; 
&40iu for alleged improper 
interference with the contract; 
and' 940m punitive damages for 
intentionally inflicting emotional 
distress on him. 

Lord Denning said that if Dr 
Bloch had any case at all he 
could perfectly well litigate in 
the UK against the English sub- 
sidiary alone and get all the 
damages to which he was 
entitled. He had no semblance 
of a case against the U.S. parent. 

There was nothing to warrant 
the suggestion that the com- 
panies had been guilty of con- 
spiracy and fraud, or had duped 
Dr Bloch into believing that 
they would develop his project 
when they never intended doing 
so- 

The attempt to get the case 
into the U.S. courts was a device 
which ought not to be allowed 
to succeed, said Lord Denning. 

**I trust that our courts on 
both sides of the Atlantic will 
not allow it," he said. 


European expansion for 
components distributor 

BY ARTHUR SMITH. MIDLANDS CORRESPONDENT 




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. >- • 

ii'V * j • 

* . <!■' 


PARTCO, the Quinton Hazell 
automotive components dis- 
tributor, is seeking rapid expan- 
sion in Europe over the next IS 
months. The distribution opera- 
tion has a £55m annual turn- 
over, most of it in the UK. 

Mr Ray Sollett. chief executive 
of Quinton Hazell, said expan- 
sion al Partco was another 
example of how normal com- 
mercial growth would continue 
within his company even though 
Burroah. the holding group, had 
announced Quinton Hazell was 
for sale. 

Mr Sollett said that in spile of 
national recession, trading and 
profit performance at QH had 
improved over the first quarter 
of this year. Last year the com- 
pany achieved a £4. Ira trading 
profit, compared with a surplus 
of £fi.3m the previous year. 

Mr Peter Webber, chief 


executive of Partco. said western 
Europe was seen as the natural 
market place for his company. 
The aim was to expand the 10 
branches in Holland to 30 over 
the next 18 months. Potential in 
France, Switzerland and Austria 
was also being explored. 

He stressed the need mean- 
while to strengthen the UK 
operation. To that extent the 
company was implementing a 
£1.5m investment in a mini- 
processor computer system for 
its 147 UK branches. 

The programme would bring 
little savings in manpower but 
ought to cut stockholding by 
about 10 per cent — worth more 
than Urn a year. 

Parico was supplying replace- 
ment parts rarher than original 
equipment and with the growth 
in imported models there had 
been an “explosion" in the 
number of components held. 


Nato funds research link 


■V ' N-'i 




BY DAVID F1SHLOCK. SCIENCE 
AN INITIATIVE to increase 
co-operation between industry 
and universities is being 
launched hv the North Atlantic 
Treaty Organisation. 

The aim is to link industrial 
and academic research across 
national boundaries. Professor 
Robert Chabbal. Nato's assistant 
secretary genera! for scientific 
affairs, said in London yester- 
day. 

Nato. which lias 15 member 
countries, would finance sabba- 
ticals for dons to work in 
industrial research laboratories 
abroad, he said. When they 
returned they would be more 
willing to collaborate in re- 
search with their home 
industries. , 

Nato’s scientific affairs 
division would provide similar 
facilities for industrial 
scientists wishing to take teffl- 


EDITOR 

porary post-, in universities in 
Nato nationx 

Prof. Chabbai. former head 
of the Centre National dc la 
Recherche Seientifique (GNBS) 
in Paris, said he believed the 
pace of technological progress 
had depleted industry's rcser- 
voirs of new knowledge. 

Industry was increasingly 
hampered by lack of funda- 
mental knowledge about its pro- 
ducts and processes 

Nato’s initiative was an 
attempt to refill the reservoirs 
of knowledge for industry. He 
thought about half the ex- 
changes would he with the U.S,, 
because of the large amount of 
scientific research done there. 

But the signs were that 
Britain was a popular choice— 
because scientists tended to 
speak English. 


year. II ha* shed 20U workers 
in I lie pust year 

In a separate UevdupDieni, 
BSC Plates has revived the 
manufacture of heavy anchor 
chains, which ceased here three 
years a no. 

Together with Spain's Vici- 
na.v ernnpany. BSC Plates is a 
5n:30 partner in a factory at 
Glengamoek, near Glascow, 
which plans to start making 
3,1100 i annex of anchor cl tain a 
year fur offshore structures and 
shipping. 


By Our Energy Editor 
AN ABERDEEN company 
has won a contract believed 
to he worth over £lfltn to 
provide drilling services on 
Conoeo's reiolutionary oil 
production platform in the 
Hutton field of the North Sea. 

Conoco (UK) has awarded 
the contract lo Dan-Smedvig 
of Aberdeen, a company 
jointly owned by Davies and 
Newman Holdings and Sracd- 
vig Drilling of Norway, 

The contract, which will 
run initially for three years, 
involves help during the 
fabrication, assembly and 
commissioning of the Hutton 
drilling faci lilies. It will also 
include finishing wells 
already drilled as well as 
starting new ones. 

• Taywood-Santa F<\ a com- 
pany with North Sea experi- 
ence, has broken into the 
Middle East oil industry with 
a contract for work in the 
Khurais Field in Saudi 
Arabia. The company, owned 
Jointly by Taylor Woodrow 
Construction and Santa Fe 
International of California, 
has been awarded a contract 
by Aramco Overseas for pro- 
ject proposal work on the 
design of a water injection 
system. The wort; will be 
undertaken in the UK at 
Taywood-Santa Fc's head- 
quarters in Greenford, 
Middlesex. 


BY LYNTON McLAtN 

BRITISH CALEDONIAN Air- 
ways has won its battle io fly 
scheduled passenger services 
permanently between Latwick 
Airnort, London and Los 
Angek-s. the route left vacant 
with the collapse of Laker Air- 
ways in February - . 

The independent airline was 
grunted a 10 year licence to fly 
me route by the Civil Avi 2 li(kn 
Authority yesterday after 
Briiith. Airways, the only other 
British airline flying between 
London and Los Angeles, with- 
drew its objections to the BCal 
application. 

The licence supersedes BCal's 
temporary exemption from 
lii'en>inn grunted in the wake 
of the Laker collapse. BCal 
was given the right to start ser- 


vices immediately, but it in- 
tends to start scheduled ser- 
vices as planned on May 21. 

' The Civil Aviation Authority 
also granted BCal permission 
to offer passengers an excur- 
sion return fare of £399 for an 
< 3 nLroduciory period from May 
21 to June 30. This would have 
been £51 cheaper than the exist- 
ing excursion tariffs offered by 
the other airlines on the route 
— British Airways, Pan Am 
and TWA— but the CAA has 
also permitted these airlines to 
offer the £399 fare for the some 
period. 

The BCal fare will be £450 
return for the ” shoulder 
period ** before the summer 
peak, with £185 single standby. 
The summer peak return excur- 


sion between Gatwick and Los 
Angeles an BCaJ will be £534 
between July 1 and September 
14, with £212 for a peak single 
standby. 

A condition of the licence 
for BCal is that the “range of 
fares will be similar to those 
offered by other airlines on the 
route and at levels which would 
also have applied to Laker Air- 
ways had they survived ” the 
CAA said. 

Mr Alastair Pugh, managing 
director of BCal. said yester- 
day's announcement was an 
■■ outstanding vote of confi- 
dence on the part of the CAA." 
He said BCal would be able to 
battle io recover the British 
share of the market with no 
inhibitions. 


Safety Council fails to win ban on masks 


by James McDonald 

THE Home Office has Rimed 
down a requesr by the British 
Safety Council fur a ba non the 
sale of " smoke masks.” 

However, officials of the Home 
Office, the Department of Trade 
and other Government bodies 
are studying the arrival of the 
masks on the UK market They 
are available lo the public but 
are intended for hotel and office 
use. Manufacturers claim ihey 
provide a certain amount of 
protection against smoke in fire 
conditions. 

The private secretary of Mr 
William Whitelaw. the Home 


Secretary, wrote to Mr James 
Tve. director general of the 
British Safety Council saying 
that certain aspects of this 
development were a cause for 
concern. This arose from the 
inability of the devices to filter 
out carbon monoxide and the 
possibility of a false sense oF 
security being engendered in 
users, or potential users, not 
aware of their limitations. 

Officials feel that in present 
circumstances a ban would not 
be justified, says the letter. 
- Work is concentrating instead 
on examining the feasibility of 


drawing up performance speci- 
fications which could, if neces- 
sary, be used as a basis for 
legislative action in the future.” 

If specifications can be estab- 
lished. the Home Office letter 
says they will be passed to the 
British Standards Institution so 
that it can consider formulating 
a British Standard. One of the 
obstacles to applying suitable 
controls is the absence of such 
a standard. 

At a Safety Council in London 
Mr Tye expressed the council's 
disappointment over the Home 
Secretary's decision. 


From May 21st. 
British Caledonian 


flies to L.A. 


From May 21st there’s a better way to LA. A better way fo check-in. 

A better tn-f fight service. A better way to arrive. A better way to depart for your 
next destination. And an even better return departure time to London- 
7.30 pm the last out of L.A. 

We never forget other airlines want lo fly you to LA. That’s why we try 
to do it that little bit better 

Why we never forget you have a choice. 




With our exclusive check-in terminal at Victoria station, frequent high- 
speed rail connections to the airport and all flights departing from uncrowded, 
one-terminal Gatwick, flying British Caledonian to LA. couldn’t be easier. 



As well as giving you a choice of 3 cabins, First Class. Executive 
Class and Economy Class, we also give you 2 films on every flight 


With British Caledonian arrivals landing at the separate Western 
terminal you can avoid all the queues at LA. airport. You can a/so connecf 
with over 40 U.S. destinations on Western's network without even changing 
to another building. 


Our wide bodied DC-IOs offer 
Skylounger seats in First Class and the 
best in-flight sen/ice in every class. 

For details ask your travel agent or 
local British Caledonian office. 







10 


UK NEWS — LABOUR 


Financial Times Friday May 14 1982 


Right keeps 
boilermaker 
leadership 

By Our Labour Editor 

THE YEAR-LONG battle over 
the post of c?neral secretary of 
the Boilermakers Society, one | 
of the oldest and most impor- j 
taut trait unions, now appears 
to he settled in favour of Mr j 
James Murray, the Righi-wing 
candidate and previous incum- 
bent. 

Mr Murray stood down as 
general secreiar y earlier this 
year after a court action brought 
by his opponent Mr Barry 
Williams. It is understood he 
has won a second ballot by some 
600 votes. It is *.o r vet dear 
whether either candidate will 
challenge the conduct of the 
ballot. 

The earlier election had been 
disputed on a number of counts 
by Mr Williams and Mr Murray. 
Both the first result and the 
recounted total showed narrow 
wins for Mr Murray. 

The High Court ordered a 
fresh election last month, while | 
Mr Sandy Scott. assistant j 
sen era] secretary, served as act- 1 
ing general secretary. Mean- 
while] Mr Murray retained his 
seat on the TUC General Coun- 
cil. 

Hospitals action j 

THE National Union of Public I 
Employees, the biggest union in | 
the health service, yesterday , 
claimed that industrial action I 
hart been stepped up in hospitals j 
in most parts of the country. 


Top civil servants oppose Tebbit Bill 


BY DAVID GOODHART. LABOUR STAFF 


THE First Division Associa- 
tion. the union representing 
8.000 top civil servants, has 
backed the TUC's campaign 
against the Employment Bill. 

In a controversial move, 
which will be seen as a step 
away from the union's tradi- 
tional political neutrality, the 
annual conference yesterday 
endorsed the executive's deci- 
sion to support the TUC cam- 
paign. 

But Mr John Ward. FDA 
genera? secretary', warned of the 
dangers of a movement to the 
extreme left in the Ciw.l Ser- 
vice unions. 

He said it was ironic that 


just as the Government seemed 
to be softening its attitude to 
civil servants the unions were 
moving significantly to the left 
and “as in the case of the. Civil 
and. Public Servants Associa- 
tion. the extreme left." 

As examples of the Govern- 
ment's new attitude, he quoted 
the decision to break its own 
4 per cent limit by approving 
tHe 5.9 per cent Civil Service 
pay arbitration decision and. 
also approving the Top Salary 
Review Body award of 14.3 per 
cent. 

On the Employment Bill 
being introduced by Mr Norman 
Tebbit, the Employment Secre- 


tary, Mr Ward assured dele- 
gates that the executive would 
continue to monitor the TUC's 
actions- and ensure it did not 
usurp tiie power of Parliament- 

“We were .assured by Lea 
Murray at Wembley that we 
would not be supporting a cam- 
paign that set out to break the 
law,” he said. 

The new employment legisla- 
tion threatened civfl servants' 
ability to take industrial action. 
He drew a distinction between 
the political neutrality of the 
civil servants dealing with 
official business and collective 
matters where .trade union 
interests were involved. 


But Mr Neil Davies from the 
Department of Employment 
warned that his own department 
was split down the middle on 
the Bill.. Mr Michael Smart, 
from the same department, said 
support for the campaign would 
bring many resignations from 
the association. Some Labour 
MPs had been quoting the 
FDA’s proposition as a “high- 
quality seal of disapproval.” 

A substantial majority of the 
200 delegates, representing 
senior administrative and 
specialist grades, supported the 
executive. An amendment to 
send the issue to a secret ballot j 
was narrowly defeated. . . j 


Another union rejects new technology deal 


BY 1VO DAWN AY, LABOUR STAFF IN SOUTHPORT 


ATTEMPTS BY Civil Service 
activists to reverse an agree- 
ment on new technology was 
backed again yesterday when 
the Society of Civil and Public 
Servants voted to oppose the 
deal. 

The SCPS annual conference 
at Southport agreed by a narrow 
majority to instruct the execu- 
tive to appose any introduction 
of new technology until the 
Government gave firm under- 
takings that no jobs would be 
Inst. The decision was said to 
mean an outbreak of strike 
action. 

There was a similar decision 
earlier this week at the annual 
conference of the Civil and 


Public Services Association 
(CPSAl. the largest Civil 
Service union, which reversed 
the verdict of its own executive, 

Both unions now face ah 
accute dilemma. Under a two- 
year interim deal made with 
the Government in March, the 
Council of Civil Service Unions 
(CCSUJ agreed to allow new 
technology to be introduced, 
provided there was no compul- 
sory redundancy. 

But the decisions this -week 
now commit both the SCPS and 
the. CPS A to oppose any new 
technology until there" was a 
pledge to maintain staff levels. 
The original deal allowed job 
cuts through natural wastage 


and non-replacement of retiring 
employees. 

Though the SCPS executive 
originally opposed the agree- 
ment, Mr Peter Palmer, vice 
chairman, argued yesterday 
that the union had to support, 
at least for the present, . the . 
majority decision of the nine- 
union CCSU. ■ 

It would be “ extremely 
unwise” for other unions to 
impose an agreement on two of 
the major unions most Involved 
in office technology, he warned. 
A meeting of the CCSU on July 
1 was likely to throw out the 
agreement, he suggested. 

Despite Mr Pabner’s appeal, 
delegates decided on a card 


vote of 44147 to 4,9 12 for an ' 
immediate ban on new 
technology. The future of the 
deal may now hang on tbe 
decision of any one other Civil 
Service union. 

Under CCSU rules a two- 
thirds majority is required from 
the 63 votes on the council to 
overturn a- decision. The com- 
bined votes of the SCPS (11), 
tbe CPSA (21) and the Civil 
Service Union (six) would not 
be enough to scrap the deal. 

Mr Campbell Christie, SCPS 
deputy general secretary, later 
said that “ undoubtedly ” the 
decision will lead to outbreaks 
of strike action. 


Productivity 
scheme 
averts 
wage cuts 

By Arthur Smith, Midlands 

Correspondent 

UNION LEADERS last night 
claimed a victory at Burman 
and Sons, the Birmingham- 
based engineering company, 
which told its 690 manual 
workers to accept pay cuts 
of up to £18 a -week or be 
dismissed. 

Hr Ernie Hunt, district sec- 
retary of the Amalgamated 
Union of Engineering 
Workers, said the company 
had realised “ the folly of its 
action.” Rather than imple- 
menting the dlwntBiah the 
management had agreed to 
talks. 

A productivity scheme dis- . 
■ cussed with the unions under 
which workers eon Id maintain 
their earnings had been 
accepted overwhelmingly by 
the workforce. “It will mean 
some men will have, to work 
harder to earn the same 
wage,” Hr Hunt said. 

But he- insisted the higher 
productivity offered by the 
trade unions would enable 
the company to become more 
competitive and win new 
orders in the troubled auto- 
motive sector. 

The company, part of the 
Adwest Group, shocked union 
leaders by its tough fine when 
it wrote to an the manual 
workers In March 


THE POWER 
OF MILLIONS OF HORSES 

The numbers are huge. Iveco now produce 325,000 diesel engines 
per year. ^ 

Bean ng the names Fiat, Sofim, and Arfo. Engi nes from 40 tol ,000 hp. . 

For care, trucks, agricultural tractors, boats, earthmoving machinery and 
locomotives. Engines for every industrial use and in particular, to meet 
the needs of road transport 
Fbr economic operation, think diesel engines by Jveco. 

IVECO, A WORLD OF TRANSPORT 


Unemployment leads 
to sharp drop 


in union recruitment 


BY JOHN LLOYD, LABOUR EDITOR 


THE REAL rate of unemploy- 
ment, which will lead to 5m 
jobless by May 1984, is posing 
hard choices for the unions and 
the Labour Parly, according -to 
Mr Clive. -Jenkins, general. secre- 
tary . of the - Association, of 
Scientific, Technical and 
Managerial Staffs. 

Introducing the . ASTMS 
quarterly review yesterday, Mr 
Jenkins said that the union had 
seen a sharp drpp In its ability 
to recruit new members in the 
past few months. Companies 
bad “just given up” and were 
either laying off white-collar 
and management personnel or 
not replacing .those who left. 

“ For the first time employers 
have abandoned hope of an. up- 
turn. This is the most pessi- 
mistic quarterly review we have 
ever produced^ We can see a 
slowing down in the unemploy- 
ment rate but no sign of its 
climb stopping.” 

The review claims that: 

• Output levels win stabilise 
“ in the pit of the recessson.” 

• Unemployment will continue 
to rise , steadily by 300,000 
during the year. 

• Average living standards will 
fall a further 1.5 per cent. 

O Productivity levels will rise 


further.. In : .1.982, •’ but only 
because employment is falling 
..faster than output. 

Mr Jenkins said that the 
effects of unemployment on 
ASTBfSwoald be to cut at least 
6 per cent of its 490,000-strong 
membership this year, and that i 
the union was now budgeting for 
a 10 per cent drop on an 
annualised basis. . 

' The union would have to cut 1 
its affiliation 'tb the TUG and 
to the Labour Party by around 1 
10 per cent— a move which will 
-increase the finandaa problems j 
of these- two' bodies. 

It is understood that other . 
unions, many of which have ’ 
seen membership falls larger , 
than the ASTMS, wSJ. also be > 
forced to cut-ihe£r affiliations to j 
the party . as well as to tbe TUG. , 

Mr Barry Sherman, tbe • 
union's research director and > 
author of the quarterly review, 
said that the sharp drop in 1 
domestic' investment meant [ 
that the UK was falling steadSy 
behind competitor countries. By ( 
the end of this financial year, i 
tiie average family would \ 
require a 19 per cent increase 
in pre-tax earnings to recover 
its earnings level of May 1979, 
when' tbe present Government . 
came to power. ' 



Scargill warns of action 
to safeguard mines 


BY OUR LABOUR EDITOR 

MR ARTHUR SCARGILL, the 
miners’ president, has warned 
of action by mineworkers if the 
National Coal Board refuses to 
meet the union's executive to 
discuss their misgivings over the 
future of the industry. 

In a tooghly worded, but not 
categorical, statement Mr Scar-, 
gill said that fears bad been ex- 
pressed at area level in the 
National Union of Mineworkers 
over the prospects for the in- 
dustry.. 

He pointed to concern- over- 
coal imports, the continuing 
high " imports of oil for dc- 
tricity generation and references 
iij Parliament: and elsewhere 'to 
possible contraction- Members 
were also. concerned about the 
introduction qf new technology, 
and the payments received' .for. 
working with new .equipment 
He claimed there was wide- 
spread dissatisfaction among 
miners .over uthe. .operation- o£ 
the incentive bdntis scheme, 
which had resulted in strikes! 
and other industrial action is, a 


APPOINTMENTS 


Deputy chief for 
Charterhouse Group 




Mr John B. Hyde has been 
appointed deputy chief executive 
of the' CHARTERHOUSE 
GROUP. ' He continues as chair- 
man and chief executive of 
Charterhouse Japhet, the group’s 
merchant banking subsidiary. 
Mr Geoffrey G Rowett, the group 
chief executive, Is due to retire 
from executive duties, next year.: 
Mr Hyde joined Charterhouse in 
1081 having previously been chief 
executive of Chemical Bank 
International 

* 

Mr Robert Pirle has been 
appointed to the board- of 
N. M. ROTHSCHILD AND SONS 
from June 1. He becomes prest 
dent and chief executive officer 
of Rothschild Inc., New York, on. 
the same date. 

★ : 

Mr David Sefton "has joined 
ORGA-TECH as sales director. 

★ 

Mr Crohan O’Shea, chairman 
of C. J. O'Shea and Co, bas been 
elected president of the 
NATIONAL ASSOCIATION OF 
FORMWORK CONTRACTORS 
for 19S2-83. New vice-president 
Is Mr Michael Napier, director 
of G and S Formwork Com- 
pany, and honorary treasurer is 
Mr Roy Howard, chairman and 
managing director oC Ardm i n 
Formwork. 

■k 

Mr Anthony C. Stirling has 
been appointed to the board of 
WESTMINSTER AND COUNTRY 
PROPERTIES. 

*- 

Dr Ian P. Sword, managing 
director, of Inveresk Research 
International, has been appointed 
a director of -COGENT, the 
technology fund formed by Com- 
mercial Union Assurance and 
tbe Legal and General Group- . 

■ * 

Mr John W. Bryant, becomes 
the third British member of the 
board of VOLVO TRUCKS 
(GREAT BRITAIN). He was 
general manager controlling 
both assembly . and parts 
divisions. He will now be re- 
sponsible for all technical- 
matters concerning Volvo com- 
mercial freight and passenger 
vehicles iu Britain— and 
additionally, control' the design 
and manufacture of those 
British-built vehicles destined' 
for export markets. Mr Mats 
Ola Palm, at present marketing 
director of Volvo parts division 1 
in Gothenburg, also joins the 
British, board. 

'* 

RICHARDSONS WESTGAXTH 
has appointed Mr &. .Bates. 
assistant managing director and 
Mr J. M. K. Macdonald. as- finan- 
cial director. .Mr K. J. Hlddls 
has bees appointed .company 
secretary.- 

Mr Leslie Kemp, has been re-, 
appointed as chairman "oif the 


CONSTRUCTION INDUSTRY 
TRAINING BOARD for a further 
three years from July 2L He 
was a national secretary of the 
Transport and General Workers 
Union. 

it 

Mr Simon Morris, a manager 
at GXHDEHOUSE, has been 
promoted to director. Mr Michael 
Bliss has been appointed a non- 
executive . director. He is 
currently the joint managing 
director of Wei beck Financial 
Services. 

★ 

; Mr J. R. Stansfie/d bas been 
appointed president of the 
BRITISH RECLAMATION IN- 
J>t®THEESS CONFEDERATT 0 1ST 
to succeed Mir Erie Cross. Mr 
Stansfield: .fis chairman of E. 
Butterworth and Company. 

.. . * 

Mr Graham Kemp, founder of 
GRAHAM KEMP COMMUNICA- 
TIONS, bas- been appointed 
chairman "and Mr Geoffrey 
Morgan, a director, has now been 
made managing director. Graham 
Kemp Communications is a sub- 
sidiary of AGH Research. 

Mr Keith Chariton, managing 
director of Leech Homes (North 
East) has " been promoted to 
group sales director of the 
parent company, LEECH 
HOMES. Mr Dennis Webb, for- 
merly . personal assistant t-o the 
deputy managing director of the 
WG2am Leech group, fills tbe 
vacancy - created by the 
promotion ■ 

: Following the acquis tion of 
Memo res by Burroughs, the 
BURROUGHS CORF has 
appointed Mr Beto Braun as 
vice-president, .in addition to 
his position as president of tbe 
Memorex International Group, 
based in London. 

* . 

i Mr Alan F. Moss, chief execu- 
tive of BPCC Web Offset Corp 
and managing director of 
Chrom ©works, has been 
appointed managing director 
BPCC group . sales, a new 
position hi the -Corporation. He 
Is. a. BPCC main board -director. 
Mr Leslie Bradman, managing 
director of Nickel old. has been 
appointed- -chief executive BPCC 
Web Offset Corp, and joins tbe 
BPCC main board. Hr Donald 
C. Davis has- been appointed 
BPCC publishing group financial 
director. He was ‘formerly group 
managing director of Pitman. 

* 

Mr WITH am B. Stater has been 
appointed chairman of ASSO- 
CIATED CONTAINER TRANS- 
PORTATION (AUSTRALIA), 

succeeding Hr Edmund Vestey, 
■who continues on the board- Mr 
Slater, who recently took owr 
as chairman of ACT LimKed, is 
managing director of the Canard 
Steam-Ship Company: 


number of pits. 

The NCB later confirmed 
thatt here had been a number of 
stoppages, and that 174,000 
tonnes of coal had been lost 
through stoppages in tbe first 
five weeks of this year, up by 
17,000 tonnes on the same period 
in I98L . 

However, the board said that ] 
it had a routine quarterly meet- 
ing with the NUM planned for ! 
next week, and that it had 
offered the union a board level 
meeting in cohfcert with otfier 
unions. 

Mr Scargfll. said that the 
union "insisted’* on a meeting 
without other , unions present, 
and that the executive would 
take a decision on appropriate 
action if the board had not given 
• dates for such a meeting by next 
month’s executive. 

Two , projects •— the coal 
liquefaction plant at the Point 
of Ayr. in North Wales and the 
smokeless 7 fuel plant at 
Aberayon ifi Sooth Wales — - are 
now ta doubt :v" 


D 








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Grapefruit, bacon, sausages, mushrooms the folding baby buggy without this eady 
and tomatoes, tea or coffee. morning inspiration. 

In short (or rather in M), the traditional Admittedly one can detect the sound 

Pndkh breakfast As served in British of tongues being firmly planted in cheeks 

Ahways European Club class. during these observations. 

■Where would the British businessman _ But there’s many a true word spoken 
be without it? (Apart from another airline). in just such jests. 

Some enthusiasts suspect we’d never As you’ve no doubt discovered to your 

have split the atom, invented TV; or created discomfort 

Full English breakfasts are served on early morning flights to: Malta,Lainaca, EudapestLisbon, Oporto^ladrid,Barcdonaj GibEaltas-Bologna, Milaiijtome, 


Taking on the continental competition 
with nothing under your belt but a meagre 
continental breakfast can spell disaster. 

So whenyou have to leave home at some 
unearthly hour without eating, make sure you 
fly British Airways Club. T} jl 

It’s one ofthe -01111811 
few traditional breakfast airways 

clubs left "WfeTltake more care of you. 

Oslo, Geneva, Hamburg, Warsaw, Zurich, Stockholm, Copenhagen and Prague. 








u 


Financial Times Friday May 14 1982 


UK NEWS — PARLIAMENT and POLITICS 


COOL RECEPTION FOR FOREIGN SECRETARY’S HEAVY EMPHASIS ON DIPLOMACY • HEALEY RENEWS SUPPORT FOR TASK FORCE ^ftackS OH 


Heath scorn for sell-out fears angers Tory right 


BY JOHN HUNT, PARLIAMENTARY CORRESPONDENT 


3 JR EDWARD HEATH, the 
former Conservative Prime 
Minister, last night made his 
first Commons intervention on 
the Falkland® dispute. He 
urged the Government to press 
ahead with negotiations and 
ignore pressure from right-wing 
Tories for an invasion of the 
islands. 

In a speech which was fre- 
quently interrupted by protests 
from, angry Conservative back 
benchers he declared: “ I would 
ask the Foreign Secretary not 
to be moved in any way by the 
cries of sell-out.” 

He insisted that there would 
be no dishonour in withdraw- 
ing the task force without a 
large-scale military action once 
a successful agreement was 
under way with Argentina. 

In particular he stressed the 
importance of leaving a loop- 
hole in the negotiations in 
order to give the Argentine 
junta a way out to the 
acceptance of a reasonable 
settlement. 

air Heath also upset many of 
his colleagues when he 
emphasised that the Falkland 
Islanders could not have a veto 
over the long settlement. 

He maintained that after the 
present hostilities circum- 
stances for them could never 
be the same as in the past, and 
argued that the Government 
had to balance the islanders' 
wishes against Britain's overall 
interests in Latin America. 

In a rare compliment to Mrs 
Thatcher, who was listening 
intently, he said that so far he 
wholeheartedly supported the 
strategy adopted by her and Mr 
Francis Pym, the Foreign 
Secretary. 

It was noticeable that despite 
the criticisms from the Tory 
right wingers, Mr Pym nodded 
in agreement at some of the 
points made by Mr Heath. 


Mr Enoch Powell (OUP South 
Down) said Mr Pym should 
resign- 

If there was a difference of 
opinion in the Government 
about the crisis, it should be 
resolved. 

“If the Foreign Secretary 
has not agreed with his col- 
leagues in the purposes for 
which this operation Is being 
conducted, there is an honour- 
able cours* of action he could 
take,” he declared. 

And he warned Mrs 
Thatcher: “ The supreme 
duty to maintain unity of the 
Government rests with the 
Prime Minister. She owes it 
to the country, to the forces 
and she owes it to the Falk- 
land islanders to restore unity 
to the Government and to 
restore a quality of purpose.” 

In bis own speech to the 
House the Foreign Secretary — 
who laid heavy emphasis on 
pushing ahead with negotiations 
— received a cool reception from 
from the Tory benches, although 
there was a cheer from the 
Opposition as be sat down. 

Earlier, during PiTs Question 
Time, Mrs Thatcher had tried 
to reassure the group of suspi- 
cious Tories who are worried 
that the Government might be 
about to make unacceptable 
concessions to the Argentines 
to reach a settlement 

She drew cheers when she 
declared: “May I make it per- 
fectly clear we are working for 
a peaceful solution not a peace- 
ful sell-out” 

Nevertheless, the back- 
benchers became anxious a 
little later when she said 
Britain could not agree to any 
settlement at the outset which 
promised Argentine sovereignty 
over the islands. 



Thatcher: reassuring 


She added that Britain must 
have an undertaking that 
sovereignty was not “commit- 
ted ” but was in fact negotiable. 

The PM then had to put the 
record straight by taking the 
unusual course of intervening 
during business questions to 
clarify what she had meant. 

She explained: “The Argen- 
tines had been saying that 
sovereignty must be transferred 
to them as a precondition for 
negotiations or at the end of 
negotiations. We cannot accept 
that in any way.” 

The speech from Mr Pym was 
also interrupted by his own 
back benchers seeking reassur- 
ance 

There were mumbles of pro- 
test when he said that once the 
Argentines demonstrated that 
their readiness to withdraw 
from the Falklands was a reality 
Britain would be ready to 
match this by “standing our 
own forces off from the area of 


Heath: no dishonour 


conflict” 

Hr Alan Clark (C Plymouth 
Sutton) said there was a dis- 
crepancy between this and what 
Mrs Thatcher had said during 
Question Time when she had 
promised that the task force 
would not be withdrawn until 
the Argentine forces had com- 
pleted their withdrawal from 
the islands. 

There was more discontent 
when the Foreign Secretary said 
that once the Argentines had 
withdrawn negotiations about 
the long-term future would take 
a matter of months. 

If an interim agreement was 
reached, he said, long-term 
negotiations would begin quite 
soon. At that stage Britain 
would be willing to discuss 
sovereignty as one of the fac- 
tors for flie long-term future. 

At the same time he stressed 
that the withdrawal of Argen- 
tine forces was a fundamental 
precondition of a ceasefire. 


Pym: sanctions working 


The second fundamental re- 
quirement was that the outcome 
of long-term negotiations on the 
future of the islands must not be 
pre- judged. 

Mr Pym said the negotiations 
in New York through Sr Perez 
de Cuellar, UN Secretary 
General, were at an important 
point 

There bad been some indica- 
tions — the first since the crises 
began — of genuine Argentine 
w illin gness to- negotiate on some 
of the more important points. 

“But there will have to be 
more if we are to succeed,” he 
emphasised. 

On Tuesday, he said, the talks 
seem to have made a little pro- 
gress. On Wednesday, however, 
things went less wefl. 

“ Hopes have been raised 
before only to be dashed, and 
many very serious difficulties 
remain ” he added. 

If Argentina proved intransi- 
gent and prevented the success 


Economic recovery will continue 
despite difficulties, Brittan says 


BY IYOR OWEN 

A RECOVERY in the economy 
is taking place, and will con- 
tinue, Mr Leon Brittan, Chief 
Secretary to the Treasury, told 
the Commons yesterday. 

He maintained bis buoyant 
stance when Labour MPs quoted 
the more sombre views recently 
expressed by the chairman of 
1CL Mr John Harvey-Jones. 

Mr Brittan emphasised that 
the Government had never sug- 
gested that economic recovery 
would be “rapid or dramatic,” 
and accepted that it is likely to 
be “uneven and jerky" with a 
number of areas, including Scot- 
land, continuing to face difficult 
problems. 

Of Mr Harvey-Jones he in- 
sisted: “He is not immune from 
disagreement” 

Mr Peter Shore, shadow Chan- 
cellor. recalled that the ICI 
chairman had indicated that he 
could see no sign of industrial 
recovery. 

To cheers from Labour MPs 
Mr Shore maintained that the 
CBI’s end of April economic 
report and the International 
Monetary Fund’s recent esti- 


mate of Britain's growth rate at 
0.8 per cent, coupled with 3m 
unemployed, provided a more 
realistic picture of the economic 
outlook. 

The economy, he said, had 
fallen down Everest, in the 
siunmeT of 1979. climbed Box 
Hill in the last six month, and 
was now going down the other 
side. 

Mr Brittan retorted that 
Treasury forecasts of a modest 
recovery were being fulfilled. 

He claimed there was an inter- 
national consensus that the way 
Britain was going forward out of 
the world-wide recession was the 
right way, while other countries 
were continuing to experience 
serious difficulties. 

The CBI survey had recorded 
a "very optimistic picture,” with 
unproved business optimism and 
expectations of increased orders 
and output in the coming 
months, he said. 

Mr Douglas Jay (Lab Batter- 
sea North) asked: “ As the 
Chancellor has stated that 
Government expenditure on the 
Falklands Islands task force 
will in no way upset the Govern- 


ment's economic policy can you 
say whether a similar increase 
in spending would have upset 
Government policy ? ” 

There was derisive laughter 
when Mr Brittan Teplied “the 
answer is it depends on how 
much.” 

Mr John Ho ram. MP for Gates- 
head and spokesman on 
economic affairs for the Social 
Democrativ Party, argued that 
industry needed extra demand. 

He suggested that it should 
take the form of increased 
capital spending by the Govern- 
ment. and maintained that there 
was scope for this in view of the 
fact that the public sector 
borrowing reouirement for 
19S1-82 was £2bn below the 
original estimate. 

Mr Brittan said restraints im- 
posed by the Government on 
public sector borrowing had led 
to the fall in interest rates — 
one of the most important ways 
of assisting industry. 

He added: “I am not at all 
sure that a change of course 
which would make it more diffi- 
cult for internet rates to fall 
would be beneficial.” 



of the negotiations the junta 
should know that there was an 
alternative way of ending the 
crisis. 

“We do not want it but we 
are for it," he said, in a dear 
reference to the possibility of 
an invasion of the islands. 

“The choice ties with those 
who rule Argentina.” 

He assured Conservative back- 
benchers that the continued 
negotiations had not hindered 
the build-up of military pres- 
sure, nor dosed off any of the 
military options open to the 
task force. 

There were signs that this was 
beginning to get through to the 
junta 

In another passage clearly 
addressed to critics on the 
Government’s back benches he 
assured the House: “We have 
at no stage lost , sight of 
our declared objectives and 
principles. 

. “ Argentina knows how to 
avoid further military conflict — 
she can begin her withdrawal 
now.” 

The Foreign Secretary claimed 
that economic sanctions were 
having a “ real and biting ” 
effect, and that the Argentine 
economy was in disarray. 

Not a single public sector 
loan had been agreed from over- 
seas since April 2. The 
Argentine peso had been under 
heavy pressure, there were 
expectations of increased infla- 
tion and a general loss of 
confidence. 

Mr Denis Healey, shadow 
Foreign Secretary, said, that his 
party still supported the task 
force within the guidelines laid 
down for its use. There would, 
he said, be no point sending the 
force unless Britain was pre- 
pared to use it in certain 
circumstances. 

- If Argentina was responsible 
for the breakdown of negntfa- 

PM defends 
top people’s 
pay awards 


tions, then the task force would 
be obliged to continue its milt 
tary role subject to certain con- 
ditions. 

In an obvious attack on Mr 
Tony Benn (Lab. Bristol South 
East), who had called for the 
task force to be withdrawn, Mr 
Healey said that to do so 
would be to nullify the efforts ~ 
of the UN Secretary. General 
and hand the Falklands to 
General Galtieri on a platter. - 

Mr Healey thought the 
Government was right to reject 
calls from the “militarist 
tendency” on the Tory back 
benches for an attack on the 
mainland. 

Such an attack would lose 
support in the UN and lose 
the backing- of the United 
States. It would be forcing 
Argentina into the arms of the 
Soviet Union. 

There were some angry 
muttering; from Labour left 
wingers when Mr Healey replied 
to a demand from Sir Peter 
Emery (Con Honiton) that he 
should repudiate remarks by Mr 
Benn in Washington yesterday. 

Sir Peter said. Mr Benn had 
suggested he spoke for the 
British People in demanding a 
ceasefire and the withdrawal of 
troops. 

Acidly Mr Healey replied that 
he had no personal responsi- 
bility for what was said by Mr 
Benn — a remark that drew 
angry shouts of “Get on- with 
it, don’t make jokes” from left 
wingers. 

. Liberal leader Mr David Steel 
said the FalMands crisis was the 
greatest debacle in Britain’s 
foreign polity for 25 years. 
When it was all over, the 
Government should seriously 
consider whether to set up a 
Commission similar to the one 
that investigated the . First 
World War disaster in the 
Dardanelles. 


Treasury 

model 

dismissed 


ALLEGATIONS THAT -the Trea- 
sury model has been “rigged” 
to produce unjustifiably opti- 
mistic economic forecasts were 
dismissed as “absurd and un- 
founded” by Mr Leon Brittan, 
Chief Secretary to the Treasury, 
in the Commons yesterday. 

The Treasury is expected to 
issue a statement today 
. Mr Brittan admitted -to being 
concerned about the margin of 
error in the forecast for the 
public sector borrowing require- 
ment in 1981-82 — the outturn 
figure was £2hn bekmr the 
Budget estimate. 

He told his Labour prede- 
cessor Mr Joel Barnett MP for 
Heywood and Koyton: “I am 
as concerned as yon are as to 
why so large a change came 
about in such a short time.” 

Bail conditions 
to be reviewed 

THE Scottish Crown Office is to 
review' bail conditions because 
of the many people who com- 
mit offences while awaiting 
trial, Mr Peter Fraser, Solicitor- 
General for Scotland, said 
yesterday in a speech to the 
centenary conference of the 
Scottish Conservative Party, in 
Perth. 

Scottish chief constables had 
expressed dissatisfaction. Tay- 
side’s chief officer had reported 
that over six months 243 per- 
sons were on bail, that within 
this group were people further 
charged with com mi ting 249 
other crimes and offences. 

Mr Fraser said he would see 
what could be done to ensure 
courts were made aware of 
cases where further offences 
were comitted while the 
accused was on bail. 


U.S. insurance broker tells 
Lords of Lloyd’s ‘conflicts’ 


BY JOHN MOORE, CTTY CORRESPONDENT 



rv"V7 Weatherail 
r^n Green & Smith 

22 Chancery Lane London WC2A1LT 

01-405 6944 


COMPANY 


ADDRESS 


• Trevor Humphries 

Mr Michael Foot, Labour leader, met the party's two candi- 
dates for forthcoming by-elections at the Commons yesterday. 
Mr David Nicholas, left, is standing for Mitcham and Morden, 
Mr Anthony Blair for BeaconsfieU 

Radiation curbs ‘ahead’ 


BY DAVID FISHLOCK. SCIENCE 

BRITAIN is ahead of most EEC 
members in the regulation of 
radiation protection for medical 
purposes, a House of Lords 
select committee has concluded. 

It believes the community as 
a wbofle “ needs to be persuaded 
to adopt effective practices ” 
promoting greater radiological 


EDITOR 

protection of patients. Radiation 
for medical purposes contributes 
about 94 per cent of the artifi- 
cial dose to which, the average 
person is exposed. 

Radiation protection. Report 
of the Select Committee on the 
European Communities. . Bouse 
of Lords Paper 108, SO. £525 


By Ivor Owen 

CRITICISM OF salary 
increases ranging from 1L3 
per cent to 18.6 per cent for 
judges, high-ranking service 
officers and senior civil 
servants was rejected by the 
Prime Minister in the Com- 
mons yesterday. 

' Mr Jo' Grimond, the former 
Liberal leader, argued that 
Increases on such a scale, 
combined with tike benefits 
of inflation-proofed pensions, 
opened too big a gap with 
the rewards available to other 
sections of the community. 

He warned that . by 
approving the awards the 
Government was likely to 
undermine any public confi- 
dence in calk for general 
wage restraint 

. There were cries of “come 
off it ” from the Labour 
benches when the Prfane 
Minister pointed oat that top 
management in the Civil 
Service and the aimed forces, 
like the judges, had not re- 
ceived the’ awards recom- 
mended by the Top Salaries 
Review Board to full or on 
time since 1974. 

Even after the latest 
increases the salaries of the 
groups concerned would be 
only 8 per cent over the 1980 
recommended levels, she 
said. 

This contrasted with the 
pay of nurses, whose ease was 
repeatedly taken up from the 
Labour benches, which w as 
12.8 per cent above the 1980 
levels. 


A LEAPING U.S. insurance 
broker told the Lords select 
committee reviewing the 
Lloyd’s Bill yesterday that there 
were conflicts of interest within 
the Lloyd’s market which de- 
served attention. 

Mr Robert Cornxm, chairman 
of Comma and Black, which 
has a 20 per emit shareholding 
in Hinet Holdings, the UK 
broker with Lloyd's interests, 
was appearing for a group of. 
brokers seeking to block a 
clause . requiring Lloyd’s 
brokers ‘to sell shareholding 
links with underwriting agents. 

He argued that if Parliament 
was trying to present conflicting 
interests at Lloyd’s it should 
look at the rules allowing 
brokers’ executives to be under- 
writing members. 

Members of underwriting 
syndicates seek to make profits, 
while brokers are supposed to 
get ihe best deal for clients. 


This was a conflict of interest, 
he said. 

Mr Comma said he was 
“ very distressed ” about the 
complete lack of concern for 
the shareholders of brokers 
displayed by the Lloyd’s estab- 
lishments support for the 
divestment clause. 

This would .impugn the in- 
tegrity of brokers and do some 
damage in the U.S, he said. 

' Earlier, Mr Peter Miller, ap- 
pearing for Lloyd's was cross- 
examined by Mr Robert Alex- 
ander, QC, representing Lloyd's 
interests opposed to the contro- 
versial immunity clause under 
which Lloyd’s is seeking pro- 
tection from suits for damages 
by its membership. 

Mr Miller was questioned 
closely about Ihe effectiveness 
of a multi-minion pound errors 
and ommission insurance policy 
which is carried by the existing 
Lloyd's ruling committee. 


Next week in parliament 


Monday: Private Members’ 
Bill, Local Government and 
Planning (Scotland) Bill, re- 
maining stages. 

Tuesday: Employment Bill, re- 
maining stages. 

Wednesday: Employment Bill, 
Third Reading, Criminal Justice 
Bill, Third Reading, Industry 
Bill, remaining stages. 
Thursday: Northern Ireland 
Bill, Committee stage. 

Friday: Derelict Land Boll, 
Second Reading, Civil Jurisdic- 
tion and Judgments Bill, re- 
maining stages. Civil Aviation 
Bill. 

Monday: Local Government 
(Miscellaneous Provisions) Bill, 


Repost Stage. 

Tuesday: OH and Gas (Enter- 
prise) Bill, Committee Stage; 
Town and Country planning 
regulations. 

Wednesday: Debate on energy 
and the environment; short 
debate on relations with Ghana. 
Thursday: Local Government 
Finance Bill, Committee Stage; 
debate - on EEC agricultural 
trade policy. 

Friday: Administration of 

Justice BiH, Third Readings; 
Planning Inquiries (Attendance 
of Public) BiH, Second Reading; 
Gaming Amendment Bill, 
Second Reading. 


How the South Atlantic crisis has smoothed the way for some Government business 

Meanwhile, Whitehall life goes on 


BY PETBt RIDDHi, POLITICAL EDITOR 


THE FALKLANDS CRISIS may 
be almost the sole political 
topic of conversation, but every- 
day life still goes on in the 
rest of Government — commit- 
tees meet, decisions are reached 
and statements are made. 

At most, some decisions have 
been delayed. But other 
decisions could be altered in the 
future, and the wider balance 
of power within the Cabinet and 
the Government could change. 

The overall impact so for has 
apparently been limited, largely 
because only part of Whitehall 
has been directly concerned 
with the crisis. 

At the vast Department of the 
Environment for example, the 
Property Services Agency could 
be involved in eventually re- 
settling the islanders in ihe UK 
or in rebuilding Port Stanley 
airport 

But all that is for the future. 

Similarly, only a handful of 
officials within the Treasury 
have been involved in monitor- 
ing defence spending on the 
task force and in managing the 
consequences of the crisis in 
the financial markets. 

It has been roughly the same 
story in the rest of Whitehall. 

The Government machine has 
generally carried on with its 
normal work. As one minister 
pointed out, government deci- 
sions on most day-to-day issues 
essentially depend on whether 
anyone objects. 


A minister puts up a pro- 
posal, circulates it to affected 
departments inviting comments 
and objections, and if there are 
none, the proposal goes 
through. 

This process is continuing, 
possibly with greater smooth- 
ness than usual. There may be 
less discussion on some ques- 
tions, though, since some senior 
ministers and, above all, Mrs 
Thatcher are preoccupied with 
the Falklands. 

Divisions 

One minister reckons the 
decision to accept the arbitra- 
tion award on Civil Service pay, 
even though it was above the 
original Government guideline, 
went through more qiacMy than 
it might have done since the 
Prime IGnrster’s mind was 
turned elsewhere. 

It is also, by chance, the time 
of year when there is a slight 
lull in the Whitehall decision- 
making pattern. 

Many crucial decisions,- -such 
as the rate support grant or 
external financing limits of 
nationalised industries, are tied 
to the public spending review 
and to the Budget 

But the Budget and the 
annual Expenditure White 
Paper came out warty three 
weeks 'before ffite crisis began, 
and the Finance BiH is now 
malting its stately . progress 


through the Commons. 

Moreover, the seemingly con- 
tinuous public spending review 
(the PESO exercise) is still at 
a very eariy stage where depart- 
ments are preparing thefcr 
figures and ministers have yet 
to become actively involved. 

The Cabinet would anyway 
not normallyhave a preliminary 
discussion on public spending 
until late July. 

The call on senior ministers’ 
time as a result of tbe cri*** has 
meant that some meetings of 
the Cabinet’s economic strategy 
and industrial policy committees 
have been postponed or cur- 
tailed. Consequently, some 
longer term questions have been 
deferred for the time being. 

There is also no immediate 
urgency about deciding, for ex- 
ample, whether proposals on 
rates reform should be intro- 
duced. though, a view will have 
to be taken by the summer re- 
cess. 

Some controversial announce- 
ments do appear to have been 
delayed — for example, on the . 
contentious Issue of heavy 
lorries, where the Government 
will have to placate a sizeable 
group of rebellious Tory back 
benchers. 

There are, nonetheless, 
several difficult decisions which 
cannot be deferred indefinitely, 
such as the Health Service and 
British Rail disputes. 

Tbe longer ihe crisis con- 


tinues the larger the impact on 
the rest of tbe Governments 
activities is likely to be. For 
example, in parliament there 
have been five full day debates, 
though only three at normal 
times, and this, has deferred 
other business. 

So far this has not seriously 
disturbed the balance of the 
Government’s legislative pro- 
gramme and the main suffering 
is likely to come through a cur- 
tailment of the Whitsun recess- 

Arbitration 

The crisis has. however, re- 
opened divisions within tbe 
Tory Party, and, in particular, 
given a new opportunity for the 
various strands within toe Tory 
Right. 

The knives are Openly out 
within the party and within the 
Government, and Mr Francis 
Pym, the Foreign Secretary, and 
Mr Jim Prior, toe Northern Ire- 
land Secretary, are now toe 
favourite targets of this grdup. 

There is little doubt that the 
Falklands crisis has reinforced 
both toe number and resolve 
of the Conservative 'opponents 
of the Northern Ireland Bill; 
including the Cabinet sceptics, 
and its prospects now look 
highly uncertain. 

The longer-term impact on 
tbe. Government’s policies will 
obviously depend on the out- 
come of toe crisis and, in parti- 


cular, on the political balance 
within the OabineL 

Later decisions on for 
example; employment legisla- 
tion, may depend bn whether 
Mrs Thatcher and her sup- 
porters are weakened or 
strengthened. 

There will also he direct 
economic consequences which 
will affect other programmes. 
There is already strong pressure 
for a new defence review and 
the Defence White Paper has 
been Indefinitely postponed. 

At the least many MPs will 
-demand that threatened redun- 
dancies at naval dockyards are 
postponed and some ships kept 
at sea, while some MPs will 
demand a wholesale reappraisal 
of defence commitments. 

In any event toe pressures on 
defence spending are likely to 
be upwards next year and the 
year afterwards. 

The . short-term costs . and 
impact of toe -crisis still cannot 
be assessed. Treasury ministers 
and officials are, however, still 
confident that toe costs can he 
contained well within, the mar- 
gins of the £2iba contingency 
reserve for unforeseen items in 
the current financial year.: 

This is likely to be at the 
.expense of spending' on other 
new items. 

Still, the balance of toe 
■ Government's overall pro- 
gramme has hot yet been signi- 
ficantly challenged or changed- 








Financial Times Friday May 14 1982 


13 


BBC i 


G.40-7.5S cm Open University 
(Ultra High Frequency only}. 

9.00-12.10 pm- For Schools, 
Colleges. LUO News After 
Noon. UHT "Pebble Mill at One. 

1.45 Heads and TaCs. 2.02 For 
Schools, Corteges.’ 220*255 Week- 
end Wardrobe- 120 Pobol Y 
Cvi-m. .123 Regional News for 
F.nukiad (except London). 323 
Flay School. 420 Secrel 
Squirrel 423 Make 'em Laugh. 

4.45 News round Extra. 5.00 
Blue .Peter Spwial Asaijsnment.. 

3.40 News; 

0.00 Regional News Magazines. 

(5.22 Nationwide. 

6.45 Sportswide. 

T.0Q Are. Sou Being Served? 

720 Odd One Out: A quiz 
game wirii Paul Darnels. 

8.00 The Enigma Files, star- 
rinj* Tn;h Adam>. 

S20 Points of View with Barry 

Took. 

OJW.News. 

925 Status Quo— Live on !:• 
tire broadcasr from the 
National Eshihirm 
Centre. Birmingham of .i 
concert given in the 
presence of The Prnce of 
tv’aip; 

X0.I3 Mr?i>s*r«. Denis Cnmaton 

— rrirtorer. in cfir.ver=o- 
tinn with Frank Keating 
r Lin don and Smith Edst 
only l . 

10.-3 News Headlines. 

1020-12.23 am tj,,. Late Firm: 
nocimvairii,** starrier 
fin Rznrcrn and Judy 
llcc'jun. 


TELEVISION 


Chris Dunkley: Tonight’s Choice 

Ax series and serials was and wane, so different nights of 
the week establish theatselves as good ones for slaying in and 
watching television, or good ones for going out and getting away 
from it Friday has recently been turning into a barter and 
better night for going out. The centre of the ITV schedule is 
blighted by We'll Meet Again, though mercifully that ends 
tonight, and BBGS's Playhouse, which might have kept one in* 
doors, isn't having 3 vary good season. Tonight’s production, 
‘‘JakeS End,” is about a professional crook whose world is 
changing; he feels domestic pressure for respectability and finds 
new and unpleasant forces in the underworld. BBC-l’s menu 
dimply looks a mess. 

There are three programmes which seem to have possibili- 
ties, however. ITVs Survival Special, “Stranded On South 
Georgia" is (he film about King Penguin*, which Cindy Buxton 
and Annie Prince ware making whan the Falkland; business 
parted, and which by sheer good luck they managed to gat out 
“under the coses of the Argentines." as their publicity 
announces gleefully. Newsweek on BBC-2 reports on privacy 
and data protection in the age of the computer, with Timothy 
Raison, the Government Minister responsible for the White 
Paper on the subject participating. And International Snooker 
on BBC-2 reaches the semi-finals. 


BBC 2 


6.40-7 JK am Open University. 

11.00 Pbv School. W0 

1123 Snooker ".10 

12.00 Roy a! Degree Ceremony. 7.13 

12.43 pm Snncker and Baaing. 8.0ft 

5.10 Sikhs in Bnram. *25 

5.35 Weekend Outlook. 9-00 

3.40 Stars of the Silent 10.00 

Screen “Dr Jeekyll and 10.43 

Mr Hyde.*’ starring John 1120 


Barrymore. 

SnjiiikiT 
News Summary. 
Somethin;: Else. 
Gardeners’ World. 
Newsweek. 

Playhouse. 

Snooker. 

Xeu'sniqht. 

Snooker. 


LONDON 


925 am Schools Programmes. 
1122 The Bubblies. 12.00 Song- 
book. 12.10 pm Once Upon A 
Time. 12.30 Our Incredible 
World: "Wind— I he Power and 
the Promise.” -1.00 Nows. L20 
Thames News. 1.30 About 
Britain. 2.00 After Noon Plus: 
The Rt Hoq Roy Jenkins who 
will answer viewers' questions. 

2.45 Friday Matinee: “In Name 
Only," starring Michael Call an. 
4.15 Porky Pig. 4.26 Dance 
Crazy. 4.15 Freetimc. 5.15 Film 
Fun with Derek Griffiths. 

5.45 News. 

630 The B O'clock Show, pre- 
sented by Michael Aspel, 
with Janet Street-Porter 
and Fred Houscgo. 

7.06 Family Fortunes, pre- 
sented by Bob Monk- 
house. 

7 JO Survival Special: 
Stranded in South 
Georgia. 

SJ0 The Bounder, starring 
Peter Bowles and George 
Cole. 

9.00 We’ll Meet Again. 

10.00 News. 

10.45 Benson. 

11.15 The London Programme: 
Did Paul Worrell Need 
To Die? 

11JS0 Dolly. starring Dolly 
Parton. 

t 1250 am Rawhide, starring 
Clint Eastwood. 

1-20 Clow: Sit Up and Listen 

with Lady Ewart -Biggs. 

flndi cates programme In black 
and white. 


All 1CA Regions as London 
ewepi at the following times : 

ANGLIA 

"- “3 pm ;ri:« Yr.;,r '.ViP-fa 1.20 
LC 1 , |mi friw. F..r r. 
’ r i1 Gf .5 -.-f Kd",'db/. 

•- . „■ Li* i. 0 : V-'f Ht*S arc 

J_ _ 6.G0 Apou* A-s- a. 

‘ j.A'i 7 11. IS M.inbci O •*. 

• •••■ • • - r.:«. " A Man Ca'lid 

t 1 . i.'i* rj rtit-’L 

.V:>vc: 1 25 am Dost C-j . 

CENTRAL 

12 aO D: -rir--- t‘fS l S r ‘ 120 C-2r-!:ai 
'i - 2 45 Ai-r-i.-c'v C -’tnu: " Th„ 

>:• ' ti 00 CunTr,: );*«*• 10 £5 

• ’■"J- 11.15 C>. .tui I,c«w: It. 20 

• •• i 3 - V.-'.a in 


GRAMPIAN 

C.ro 4I>» - 12.30 pm r.n 

• l.-.i- In 1 20 Ngnn Naovi 

i. . V.sSt*-- flrigla a! 
s..'-" r.--, row ar:! Aff-e 

-1- fiM .-Jvr*' . 'i. - 

n-.-O. 10.45 T>o Cult- 

'■ Am . i-.i'ik's Opnn Pcai Ten" »• 

*7 45 P ,i,-i B/ tligl;!. 12.15 am 


GRANADA 


11 S2 am .■ te 

■•^3 -V. 

?::r= 12.30 pm 

Du: 


iVari 

1 23 Gra.inrtj 


:s 1-30 


re i- -3* 2.00 

Ab£.< 


t2 30 

*r«iv Mavrur 

” 

fJ 

C • 

GOO Kicf cir 

G 30 

G'j-’mj Fe;»-.na. 

■0 45 Scarra 

11 13 

A V/SlL 

-f f r- 

lav 11 4S liLfi 

Dj-.t 

V/nrifi Knsrknu) 

Ci.r 12.20. am 

; 

.416 f. m- 

‘ 7-e 

OS-i - 


■; r. 


u.- 


HTV 

12.30 pm ft-, a V7 i a ■.•.o-w at 
a- s la Kr/ 2.45 Fr.j.i# 

M.-i !»no. " T.te Ce-i*". “6 00 HTV 
Sews. 6 30 Sc V/’.3:'s Vr.i - P-abu-m"* 
W.« HTv Nouk 10 45 L.V- 

r. m- “ T s« T- p.e J r-> . ' 

HTV Crmiu/VtitM— A- «TV 
tr :ea- 9 50-10 06 am i&jif 'Jru U 
12. 00.12.10 pm BaV- Am Sinn I 4.15- 
4 45 RMi Esan . 6.00 V D,j=. 616 
RtM-. '.Viin 6.30-7.00 Mstn-'i l( 
V.'cfk. 10 45 Ou!: c -ii:. 11.16-1.00 am 

T-.c La ic SI J-.: f-’m .'A. MTV WcS! 
j: ’-4i pmj 

SOTTISH 

12.30 pm Speilb rcciK. 1JSJ Scotl.iU 
Mews. 2.45 Fr.day Me! -.tf: * Nru'hciB 
H ie ” 5.15 Pvn.itr Beaom'C 6 00 
Sccr.SRd Tocay 6 30 Gporli E/t;a 


G 46 Haas Hoie 10 45 Wars and Mains. 

11.15 Isie Cb’: 11.20 Movies Thrauoli 
f.l.dnijot, “ Br.et So a ton " 

TSW 

12.30 pm U.mmed V/nrirt 1.20 TSW 
Mams Ke.trt-.nen 2.45 The Fr.day 
Mitr-nec: " Thn Mnn Withom ■ Coun- 
• ’> ' 4 12 Gun Huneybun's Magic 

B-ffttfay-. 5 15 Emmorri.-itn r «rm 6 00 
Today Souih Wnsi 0.30 What's Alinad 
10 47 ToVj Uro Mews 10.50 Connnannl 
Glnonva: “ Lov.nrt hi tlio Ra<n " 12,30 

ain Pnrtt'ci.pl 12 35 5tiuth West 
Weothor 

*n/s 

11 52 am T'ie Undeigoi Adventures 
tif ■ Cniptlun Wlitiu 12J0 pm Bynonas. 
1.W TV^ Nr.A-. 12 45 Fr.rtjy Motions 
'■ Orders aro Orders. " atarrmo Margat 
FSrph-.me ..ml .iwy 5.15 Sale ol the 
Cdnitiif G.00 Coast IP Const. 6.30 
Fr£ ay ’Spxii’.huw 10.45 Gan.ng It 
Or'. 11.15 Best.- ned. " Tho Herr ad 
C»p« r ir.i>Pt. 5tar-nn James Whirmo'e 
and T.pp, HcdtOti. 100 im Compaitv. 

TYNE TEES 

9.25 am Tiif Go:<f Wnrri 9.30 Nonh 
Fs-.t Nc«c. 12.30 pm F.ia at Harmony 
1 20 Noun East News and Look wound. 


t2,45 Friday Matinee " Orders era 
Omors.*' atarnnp Margot Grahams. 

4.15 Csnoon Time 6.00 North Esat 
News. 6.02 Sportaume 6. 30 Northern 
L«la. 10.45 North East Newt. 10.47 
Friday Lve. 12.16 am Sup* rater P»- 
1146 John Peut II — Man ol 

V.s>on. 

ULSTER 

12 30 pm Utiramsd World. 1.20 
LunchMna. f2.4S Friday Matinea: ” All 
lor Mary,” lumng Nigel Ps trick. 
Kathleen Htrr-aon end David Tomlin- 
son 4.13 Ulster News. 6.16 Miles ton as 
>jf Mllietoriee. 5.30 Good Even.ng 
Ureter 600 Good Evening Utirar. 

6.30 Dlfl'rani Strokea. 10.44 Ulster 
Weather. 10.45 Witness. 10 50 Counter- 
pnmt. 11.20 Benson. 11.50 News ■( 
Bedtime. 

YORKSHIRE 

11.56 am The Undersea Adventures 
of Captain Nemo 12 30 Hoodoo Coun- 
try 1 20 Calendar News. 12.45 Friday 
F'im Mb tin no. ** AH lor Mary.” star- 
ring Nigel Patrick. David Tomlinson 
end Jill Day 6.00 Calender (Emlev 
Moor end Balmont editions) 6.30 
Calender Sport. 11.15 Pra-Calet>ri!y 
Snooker, 12.00 Manmx. 


(S) Stereophonic broadcast 
<wnen broadcast on VHP) 

RADIO 1 

;i W set As ft. -..a 1. 1JO0 M.ke Read. 
5 m:i E .:•:*! 11.30 Dave Lne 

T, ‘«vis 2.00 pin 5tevo VJr.ar: 5.30 
M ■' • be . ■ 5 40 Roundtable 7.00 Ard/ 
5 'i ts. .10.00-12.00 Tho Fnaay Hack 
fS) 

RADIO 2 

SOC am P.i? M;c:e (5< . 7 JO To-tv 
\‘‘r~ r, ••i*. 10 00 C:-W M:ctietmc*e 

12 00 Gic-.j H'mnifr,nl (S). 2.00 
Fd Sli';r -rt {Si including Racing 
trem York. 4.00 David Hamil- 

■on fS). 5.46 News. Sport 6.00 
Jr,—. Dun-. (Si. B-00 Victor S'vwte: 
J' r.:i h.s ctctiusrre w The Raima 2 
St.irci.T. :S' 3.45 Friday N.ghr s 

N nil! IF, i. 9.55 Sports Desk 
‘0 00 Tfis Randatn .'utr.ngs Ol Hmne 
•’"? SmcVi-! 10.30 A;isT3*r Cookr- A 
p?r::nai view of psput.ir munc. 11.00 


RADIO 


Paler Clayton with Rpund Mdn-gtK. 

1 00 N.gni Owls w.;h D:vo Geliy (SJ 

2 00 Star Wars (S). 2^7-5.00 You and 
we Ngh: and the Music (5). 

RADIO 3 

6.55 am Weather. 7.00 News 705 
Morning Cancers (5). 8.00 News 8 05 
Mewing Concert {com.nued), 9.00 
News. 9.05 Tins Week's Compose). 
Edvard Gneg (S). 10.00 Scattsh 

Ciiamber Orcnestta (Sj 1TJ0 Cop- 
land pans recital (5). 12.20 pm 

E S-.ntone. pan 1 (S). 1.00 

Nawe. . 1.05 English Smtonia. part 2 
.'Sj. 1.50 ' Heien Donatn song rec.wl 

15) 2.45 Ber^n Ptsunarmomc Ortncstu 
(5$. AM Choral Evensong (5) 4.55 

News. 5.00 Mainly lor Pleasure (SI. 
7.00 The Romance and roe Rose (SJ. 
7 JO Atban Berg Querist racial from 


the Biotdcastinu Centre, Birmingham, 
pan 1: Dvorak, Bery (S). 8.15 A Ger- 
den in Italy (short story). 8-35 Alban 
Beig Quartet, pail 2: Schumann (S). 

9.15 Engl.sh Cnamber Orchoalra con- 
cerr. part 1: Moult. Dvorak (S). 10.20 
Interval Reading 10 25 Concart. part 
2. Mendelssohn. 11.00 Nows. 11.05- 

11.15 A Charm ol Luhabiee (S). 

RADIO 4 

6.00 am Nows Bribing. 5.10 Farm- 
ing Today. G.2S Shipping Forecast. 

6.30 Today. 8.33 Yesterday, in Purla- 
mem. 8.57 Weather, travel. 9.00 News. 
9-06 Desert Island Discs. 9.45 A Side- 
ways look At ... by Anthony Smith. 

10.00 News. 10.02 International Assign- 
ment. 10.30 Daily Service. 10.45 
Morning Siorv. 11.00 Nows, travel. 


11.03 A Warrior I havo Been. 11 48 
Bird ol the Week. 12.00 News 

12.02 pm You and Yours. 12.27 Frank 
Muir Goes Into . . . Health (S). 12.55 
Weather, travel, programme news. 1.00 
The World al On# 1.40 The Archers. 

I. 55 Shi ppm g Forecast. 2.00 News. 
2 02 Woman's Hour. 3.00 News. 3.02 
Afternoon Theatre (5). 4 00 News. 

4.02 Naomi Milchison: Fragments from 
e full life. 4.10 Locally Speaking. 4,40 
Story Time. E.00 PM: News Magazine. 
5.60 Shrppmg Forecast- 5,55 Weather, 
programme news. 6.00 News, includ- 
ing Fin uncial Report. 6.30 Going Pisces. 

7.00 News. 7.05 The Archers. 7.20 
Pick of the Weak (S). 8.10 Profile. 

8.30 Any Questions? 9.15 Lenar from 
America by Afiatair Cooke. 9.30 
Xalaidoicope. 9.69 Weather. 10.00 
The World Tonight. 10.35 Week End- 
ing fS). 17,00 A Book at Bedtime. 

II. 15 The Financiaf World Tonight. 

11.30 Today in Parliament. 11.45 John 
Ebdon. 12.00 News. 


FT COMMERCIAL LAW REPORTS 


Partnership not registrable for VAT 

THREE H AIRCRAFT HIRE v COMMISSIONERS FOR CUSTOMS AND EXCISE 
Queen's Bench Division (Crown Office List): Mr Justice Webster: May 7 19S2 


“BUSINESS" FOR Value 
Added Tax purposes is an 
active trade occupation, or 
profession, continuously car- 
ried od; and although a 
partnership, by statutory' defi- 
nition engages In “business,” 
it will not be registered for 
VAT unless its activities are 
la the nature of continuous 
trade. 

Mr Justice Webster so held 
when dismissing as appeal by 
Three H Aircraft Hire, a partner- 
ship, from a decision of the Value 
Added Tax Tribunal that it was 
doc entitled to be registered for 
VAT purposes. 

■* ★ * 

HIS LORDSHIP said that the 
partnership, constituted by oral 
agreement, acquired an aircraft 
wliich was partly for the use uf 
the partners. As they would no! 
use it much of the time they 
entered into an agreement with 
a company which provided air- 
craft for private hire to suitably 
qualified pilots. 

Under the agreement the com- 
pany took over the aircraft and 
faired it oui, subject to the 
partners’ rights to use it for 
their own purposes. It paid the 
partnership a hire fee related 
to the length of time that it was 
hired nut. When partners used it. 
invoices were issued to I hem and 
they paid hire charges to the 
partnership, not to the company. 

The management, day-to-day 
operation, and rhe maintenance 
of the aircraft, were left entirely 
in the company's hands. How- 
ever. had any serious problems 
arisen, for instance, if the air- 
craft hafi needed a new engine, 
the company would have referred 
to the partners for their decision. 

The partnership, not having 
the necessary technical expertise 
or back-up facilities, did not take 
any active pan in the business 
of hiring the aircraft to the 
public; that was done by the 
company. It did. however, intend 
to make a profit. 

After acquiring the aircraft, 
the partnership was registered 
under Schedule 1 to the Finance 


Act 1972. By section 2(5) of 
the Act and paragraph I of 
Schedule L a person who made 
taxable supplies was liable and 
entitled to be registered for 
VAT. Paragraph 14 of Schedule 1 
provided that references in the 
Schedule to *' supplies ” were 
references 10 supplies ” made in 
the course or furtherance of a 
husines^.” 

The Commissioners decided 
that the partnership was not en- 
titled to be registered, on the 
ground that it did no; supply 
the aircraft "ui the course or 
furtherance of a business,” The 
partnership appealed against 
that decision to the Value Added 
Tax Tribunal. 

The trtbUDBl dismissed the 
appeal. It adopted tbe reasoning 
of another tribunal in Coleman 
r Ifie Commissioners [1976] VAT 
Tff 24. although the derision was 
nut binding upon it. In that 
case the owner of a pleasure 
barge, who had never otherwise 
carried on any trade, hired it 
out to charterers. They in turn, 
hired it out to third parties, and 
paid the owner 45 per cent nf 
the hire fees. He was entitled 
to hire it from the charterers on 
the same terms as the third 
parties. 

There the tribunal decided that 
the supply or the boat by the 
owner was not a ’’supply made 
in the course of a business" 
carried on by him. because he 
did not carry no a trade, and 
his intention was merely to make 
an investment. It held that 
’’ business." for the purposes of 
the Act. meant an active occu- 
pation or profession, continuously 
carried on. 

The tribunal is the present 
case found tile iwn cases indis- 
tinguishable. It held that the 
partnership was not carrying on 
a business with its aircraft. In 
its view, if was an informal and 
friendly partnership, constituted 
simply by oral agreements 
between friends interested in fly- 
ing. The partnership now 
appealed against the tribunal's 
decision. 

Before a person was liable or 


entitled to be registered for VAT 
purposes, it had in be established 
4 i j that he made taxable sup- 
plies; (li) that be was carry ing 
on a business: and (iii) that he 
made the taxable supplies in the 
course or furtherance of that 
business. 

The question in the present 
case was v.helher the partner- 
ship was earty ing on any busi- 
ness. Mr Mathew for the part- 
nership, submitted that a part- 
nership must, by definition, be 
carrying on a business of some 
kind. 

Section 1(1 > of the Partner- 
ship Act IS90 provided that 
*’ partnership " was the relation 
which subsisted between persons 
"carrying on a business in com- 
mon with a view of profit." It 
followed, submitted Mr Mathew, 
that as the tribunal found that 
llie present appellants were a 
partnership, it should have found 
that the partnership was carry- 
ins on a business. 

To ihe suggestion that “busi- 
ness ” might have different mean- 
ings for the purposes of tbe 
Partnership Act and of the Fin- 
ance Act. Mr Mathew noted that 
there was little, if any, difference 
in their definitions of "business.” 
In the Partnership Act. in sec- 
tion 45, it included "every trade, 
occupation or profession.” In 
the Finance Act. in section 45. it 
included "any trade, profession 
nr vocation.” The only difference 
was therefore between “profes- 
sion" and “vocation." 

Mr Mathew suggested that un- 
fortunate anomalies would arise 
if persons were carrying on 
business far the purposes of the 
Partnership Act. but not of tits 
Finance Act. 

There was no reason why pre- 
cisely the same meaning should 
be given to the word in the two 
Acts. In each Act the definition 
was inclusive, not definitive. 
Moreover, a useful test for de- 
ciding whether a business was 
being carried out was the test 
of "recognisable continuity." set 
out in Lord Fisher's cose [1981] 
STC l. That was inconsistent 


with the well-accepted doctrine, 
applicable to Uie Partnership Act, 
that a single adventure could * 
constitute a partnership. 

Also, section 22(1 1 of the 
Finance Act referred to “persons 
rartTiug on a business in part-: 
nership." If "business" had ther. 
same meaning in both Acts,., 
“carrying on a business" in that 
sub-section would be otiose. 

No doubt in the vast majority 
of cases ar. activity either did w 
did not constitute a business for 
the purposes of both Acts, but 
there might be cases in which - 
an activity was a business for' 
the purpose of one Act. and not 
the other. 

Col cm on was therefore not.- 
distinguishable, as Mr Mathew 
submitted, an the ground that 
the boar-owner there was not a 
partnership. 

Mr Mathew also submitted- 
that Cofemaw was distinguish-' 
able in that tbe boat-owner was" 

an investor, whereas no such 
finding was made in the present , 
case. 

It was neither necessary nor- 
desirable to categorise the 
various activities which did not 
constitute a business. A person- 
might acquire, use or dispose of 
a chattel for investment, or as. 
a hobby, ur a combination of. 
both, or as a means of subsidise 
ing or covering the cost of 
acquiring and owning the chattel. 
If it was not by way erf business, 
the way in which he acquired, 
used or disposed of the chattel 
was immaterial. 

Accordingly the fact that the 
tribunal made no expressed find- 
ing that the partnership was an 
investor was not sufficiently 
material to distinguish the - 
present case from Coleman. The 
tribunal was fully justified In 
adopting its reasoning. 

Appeal dismissed. 

For the partnership; IT. K. 
Nathac f Hammond and Co.). 

For the Commissioners: D. P. 
Friedman t Solicitor. HM Customs 
and Excise). 

By Rachel Davies 

Barrister 


RACING 

BY DOMINIC WIGAN 


BRITISH racegoers get their 
first chance today to see Cash 
Asmussen in action when the 
20-year-old former East Coast 
champion of America rides 
against Willie Carson in a match 
sponsored by Robert Sangster 
and Captain Marcus Lemos at 
Newbury. 

Although Carson’s mount, 
Turn Back The Time, has to 
give 21 lb to Rekal in this 


10-furlong match, for which 
the £1,500 sidestakes of Captain 
Lemos and Mr Sangster will go 
to the Animal Health Trust, he 
should be up to the task. 

For the afternoon’s most 
valuable race, the Sir Charles 
Gore Memorial Stakes, backers 
may well come off best by- 
siding with another Carson 
mount. Hula Ruler. This good- 
looking Newmarket Oaks hope, 
trained by Luca Cumani, came 
third on her racecourse debut 
behind Sing Softly, and Cornish 
Heroine in Newmarket's Pretty 
Polly Stakes. 

Newmarket today sees an 


unusual programme. The entire 
nice card — with the exception 
of the Bradon Stakes — is 
devoted to races sponsored by 
companies in the information 
technology industry. 

The feature of the afternoon's 
proceedings, which should get 
under way at 2.30 with the IT 
Information Technology Selling 
Stakes, will be the Philips 
Business Systems handicap. 
Here Francesco, a top-class 
handicapper owned by Italy's 
leading lawyer, Mr Carlo 
d’Alessio twho, incidentally, 
will be representing Carson in 
a few days’ time) looks another 


one for PiggotL The six-year- 
old gave the champion jockey 
an armchair ride in a mile and 
five furlongs handicap at Not- 
tingham recently. 

NEWBURY 

2.00— Turn Back The 
Time** 1 

2.20 — Ridge Heights 

3.20 — Hula Rnlcr MV * 

3.50 — Video Ring 

4.5ft— Jacquinta v 

NEWMARKET 

2.30 — Northern Report 

3.00— Lady Liango 

3.30 — Francesco 


flag 

1 

H 

Uh 

1 

l 


A FINANCIAL TIMES CONFERENCE 

World Electronics 

The U.S., Japan and Europe : 
Competition or Collaboration? 


Issues to be discussed: 

• The struggle for technological leadership in the World 
Electronics Industry 

• Competition for key markets 

• International trade and industrial collaboration 

• Electronics and economic development 


Some of the speakers taking part: 

Mr Gordon E Moore 

Chairman of the Board 
Intel Corporation 

MrTaiyu Kobayashi 

Chairman of the Board 
Fujitsu Limited 

Mr C J van der Klugt 

Vice Chairman 
Philips Industries 

Mr J G Maisonrouge 

Senior Vice President 
IBM Corporation 


Dr. Eng. Atsuyoshi Ouchi 

Senior Executive Vice President 
Nippon Electric Co., Ltd. 

Sir Richard Cave 

Chairman 
Thom EMI pic 

Mr Lionel HOImer 

U.S. Under Secretary* 
for International Trade 

Mr Kenneth Baker, wip 

Minister of State for Industry 
and InformationTechnology, UK 


g^ 10 n jun^ 1982 — The Inter. Continental Hotel, London 


World . 
Electronics 

hnancialtimes 

CONFERENCES 

— T To; FTnancJal Times Lnrated 
P\1 conference Organisation 


pfeesesoridmefUOdfefafiaafi/CHircardennoo 

WORLD ELECTROICS 

Name _____ 


Company 


Minster House, Arthur Street 
London EG4R SAX 
Tel: 014321 1356- - 
Telesc 27347 FTCONFG 
cables: RNGONF LONDON 


Address 


Tel 


Telex 



Durban Roodepoort 
Deep. Limited 


( Incorporated in the Republic of South Africa ) 
A member of the Barlow Rand Group 


Circular to members and notice convening a general meeting 

Borrowing powers of directors 

In his statement to members in the company’s annual report for the year ended 31st December 
1981, the chairman expressed concern aL the effect the falling gold price would have an the 
financial resources of the company. Since the time of writing that statement, the gold price has 
fallen still further and it has become necessary to monitor cash resources extremely carefully. 
Projections at current prices indicate that funds may be required on a day to day basis in view 
of the timing differences which exist between gold deliveries and gold payments and also pay- 
ment of State assistance claims for each quarter. 

In order to enable the company to continue production within a satisfactory financial frame- 
work, it is intended to finance these shortfalls in liquidity out of borrowings, for which purpose 
the amount your directors are presently authorised to borrow will require to be increased from 
R4 000 000 to R30 000 000. Article 37 of the company's Articles of Association makes pro- 
vision for the company to increase the amount which the directors are authorised to borrow, 
raise or secure for the company by consent to an ordinary resolution. 

ACCORDINGLY NOTICE IS HEREBY GIVEN that a general meeting of Durban Roode- 
poort Deep, Limited will be held in the auditorium lower ground floor, 63 Fox Street, Johan- 
nesburg, on Tuesday, 8th June 1982, at 1 lhOQ for the purpose of considering and if deemed fit, 
to pass, with or without modification, the following resolution as an ordinary resolution: 
‘‘That in terms of the provisions of Article 37 of the company's Articles of Association, the 
directors be and they are hereby authorised from time to time as and when they deem it 
necessary to borrow or raise or secure a sum of money not exceeding a total of R30 000 000 
(thirty million Rand) for the purposes of the company". 

In terms of Section 238 (I) of the Companies Act, 1973, as amended, it is disclosed that the 
directors have no interest, direct or indirect, in the aforementioned arrangements. 

For the purpose of determining those members entitled to attend and vote at the meeting, the 
register of members of the company wilt be closed from 2nd to 8lh June 1982, both days in- 
clusive. 

A member entitled to attend and vote at the meeting may appoint one or more proxies to 
attend, speak, act and on a poll vote in his stead. A proxy need not be a member of the company. 
For the convenience of any member who is unable to attend the meeting but wishes to be 
represented thereat, proxy forms are available on request from the transfer secretaries in 
Johannesburg or (he secretaries in the Untied Kingdom. Attention is drawn to the fact 
that, if it is to be effective, a completed proxy form must reach the company's transfer secretaries 
in Johannesburg or its United Kingdom registrars and transfer agents at leasL forty-eight 
hours before ihe time appointed for the holding of ihe meeting. 

Holden of share warrants to bearer who desire to attend or be represented at the meeting must 
produce their share warrants or a certificate of their holding from a banker or other approved 
person at the bearer reception office in the United Kingdom, or they must produce their share 
warrants at the office of the Paris correspondents, in both cases at least five clear business 
days before the date appointed for the holding of the meeting and shall otherwise comply 
with the “Conditions governing share warrants" in force. Upon such production a proxy 
form or an attendance form will be issued under which such share warrant holders may be 
represented at, or attend, the meeting. 

By order of the board 
RAND MINES, LIMITED 
Secretaries 
per A. R. HOLT 


Registered office 
15th Floor, 63 Fox Street 
Johannesburg 2001 

Transfer secretaries 
Rand Registrars Limited 
2nd Floor, Devonshire House 
49 Jorissen Street, Braamfimtein 
Johannesburg 200! 


13th May 1982 


Secretaries in the United Kingdom 
Charter Consolidated P.L.C. 

40 Holbom Viaduct, London EC1P IAJ 

United Kingdom registrars and transfer agents 
Charter Consolidated P.L.C. 

P.O. Box 102, Charter House, Park Street 
Ashford, Kent, TN24 8EQ 

Bearer reception office in the United Kingdom 
40 Holbom Viaduct, London, EC1P IAJ 

Paris correspondents 

Credit Lyonnais, 19 Boulevard Dcsltaliens, Paris 





14 





watermark 

encoder 


Polyester base resinous lacquer 
material ; \ Fe 2°3 


drying oven 


permanent 

watermark 

encoding 


randomly orientated 
acicular particles 


'coating 

trough 


COATING OF WATERMARK MAGNETIC TAPE 


resinous lacquer 

, : ; ; Fe 2 °3 alignment 

Polyester.base \ „ \tnagnets 

■ material : | '■ V •. ,.y 


orientation, 

direction 


randomly orientated drying oven 
coating acicular particles 
trough 

- COATING OF STANDARD MAGNETIC OXIDE TAPES 


Financial Times Friday May 14 1982 


TECHNOLOGY 


EDITED BY ALAN CANE 


Magnetic encoding may dispense with cash in hand 


WHO HAS never found himself 
without 5p for the phone or lOp 
coins for ' bridge tolls, car 
parks or vending machines? 

The problem may ' soon 
disappear if a new idea from 
Thom-EHI catches on. 

Although credit, cheque, 
cash dispenser ■ and premises 
access ID cards are familiar 
enough, the ubiquitous plastics 
oblong has not, so far, been 
considered secure enough to be 
used as a direct replacement 
for coin of the realm. 

Most of the systems in use 
at the moment are either .on 
line (as with cash dispensing, 
to -the user's bank account) or 
are very soon related to it, as 
with credit cards. . 

The move now. however, is 
to substitute the card for 
actual cash and’ Britain's main 
proponent is Emidata Systems 
of Windsor, which has deve- 
loped an approach based on Its 
recently developed Watermark 
Magnetics, a highly secure 
magnetic encoding system: and 
since such a card may be worth 
£50 or so. it tnust obviously be 
tamperproof. 


BY GEOFFREY CHARLISH 

The equipment reads the are. unaffected by- the process addition, - it is technically pos- 
value of the eard, deducts the and remain free to take .sible to. construct a combined' 


cost of the goods or services 
supplied, recodes the card's 
magnetic stripe with.. the new 
value and then returns the 
card through' the slot. 

According to Emidata. the 
present forms of encoding are 
not tamperproof. It is possible, 
says the company, to ** lift ” the 
information off the stripe and 
lay. it down again on some 
other card — in .the U.S. there 
are apparently devices sold 
specifically for the purpose. 

Em i data's WM encoding pre- 
vents such activity by laying 
down on the magnetic' stripe 
during manufacture a magnetic 
pattern which is said to be 
quite, unalterable by any 
magnetic means. 

The pattern becomes related 


magnetically recorded data in 
the usual way. 

The watermark coding 
extends across the full width of 
the magnetic stripe and through 


coin and card; system if the OEM 
company needs it. 

Emidata says, that the cost of 
each card- will' be id to. 12 per 
cent maze than conventional 


W.R output 
for £1095. 

CSLBaahtaaaSTMesnBLULBIfoiiHmMt 

IdmhsU KhxLinUMWORllL Hortinrt^Jlre. 
UlMirmnn I nrrTimirfTi TTffl TMunrfirnm 


the full thickness of the oxide credit cards and . that -the. reader 
layer, but does not interfere 
with the recording and reading 


ally: based- unit on trial with 
British Telecom at places such 
as main line rail termini and 


of normal data. 

The relation between water- 
mark and monetary data is. in 
fact, an encryption process that 
is virtually impossible, to decode 


to the subsequently encoded used inside vending machines. 


Money value 


Emidata is calling it the Cur- 
rency Card and the idea is 

simple enough. When issued, 
the special magnetic stripe is 
encoded with its initial 

monetary value. To use the 


monetary data in a particular 
way. Thus, any attempt to lift 
the money data and use ■ it 
elsewhere win fail, because in 
the new location the two will 
no longer be in proper 
relationship. 

Technically, this results from 
the way in. which the tiny 
magnets of the tape iron oxide 
are oriented. During the wet 
part of the : coating process 
many of the elements are fixed 
in to the “watermark" pattern 
by a pulsed recording head. 

When the dry tape emerges 
these elements are physically 


mechanism “will be price com-' airports, 

Roboserve of Greenford. the 

r * Ji f n r th* 1 ^ " vending machine company, will 

tages for the retailing orgamsa- a j So j, e jjj’e card, calling 

SXimhJSaSXf turn of items such .as- chocolate 

. . vanishes— rand -the . Mersey u arg _. sandwiches will be made 

or emulate without' specialised. Tunnel authorities, for example. b y w j, 0 simply uses 

Emidata equipment. can collect -some two tonnes of - his card instead of moneys* 

So the company feels that OI * -® busy da>. .should prove a popular. idea wiift 

the card can carry quite high The other ts that the company employees in big companies 
values in the knowledge that it gets rts money in advance. The yf-here these.' machines . are 
is intrinsically protected against card user has to pay up in numerous and where there is 
misuse or fraudulent reproduc- advance, of course and it is „f ten a dearth of -change. 

expected that he will therefore . u avoniu , = 

be offered a discount .on the „ D ? 
multiple payment total he would of ^ atfor d has irworporated the 
otherwise make system into the Mersey Tunnel 

Emidata has already to come. gate and is now examining 
to an agreement with four com- ^ forother areas such as mass 
panics for the incorporation of t^sit sy^ems. letsure centres 
currency card equipment in add factories: 
their systems. The - cards might become 

One of -these is Aufelcard. a cheaper, ' too. since Norpritit; 
Berne company making pubHc > leading label and ticket sup- 
payphones. In the UK market' pliers, are developing paper 
it will not be alone since Landis based rather than plastics ver- 
and Gyr already have an optic- sums of the cards. 


tion. 

Hardware that can be easily 


card, the owner simply inserts locked in position and cannot 
it into a slot to initiate the be moved by any subsequent 
transaction. magnetic field. Some, however. 


toll gate units or phone boxes, 
consists of a motorised card 
reader with an electronic trans- 
port conrroHer and a. micro- 
processor-based read/write unit. 

In' operation, the card is' read 
during the insertion pass and 
the decoded data stored in 
memory during the transaction. 
Appropriate monetary deduction 
is made and recorded on the 
card during the exit pass. 

Available as a compact OEM 
unit, the hardware occupies no 
more space than most existing 
coin box mechanisms. Indeed, 
the unit can be supplied as 
plug-compatible alternative to 
standard coin channel, offering 
quick and easy exchange. In 


Intelligence added to 
j range of analysers 


HowRlkington makes 

things easier on the eye 


Itis often said (occasionally un- 
justly perhaps) that Britain can invent 
new products but foils to exploit 
them commercially 

Wfe’d like to tell you about a 
case where the reverse has happened. 

Photochiomic glass, which 
darkens in sunlight and clears in 
shade, was invented in the US. A. in 
the early ’sixties. 

Since 1977, however; the worlds 
most advanced photochromic glasses 
have been developed and produced 
in Britain. 

Called Reactolite Rapide, 
theyYe manufactured by Chance . 
Pilldngton Ltd. and are recognized by 
the ophthalmic profession as the 

* worlds fastest reacting photochromic 

• lenses. 

They’re ideal for sunglasses, too: 
Reactolite Rapide has captured 70 % 
of the Japanese photochromic sun- 
glass market as well as being the 
leading brand in the United Kingdom. 

It ^ just one example of the 
expertise of the Pilldngton Ophthalmic 
Division which, incidentally is also 
one of the worlds leading suppliers of 
plastic spectacle lenses. 

Between them, our five divisions . 
- Ophthalmic, Electro-Optical, 

Safety Glass, Glass Fibre, and Flat 
Glass - hkve 200 subsidiary and 
associate companies in 
29 countries. 

With our widespread overseas 
base and aggressive export drive, 
over two-thirds of the Group’s 1981 
sales were made outside the 
United Kingdom. 

Something of an eye-openei; 
we believe. 




«V“ 




Enterprise at worik.WM'ldwide 


OXFORD ANALYTICAL lnstru- previous range: -oil, petrol, 
ments has added intelligence plastics and mitring, 
to its well known r ang e of X-ray The list of users of Oxford 
fluorescence analysers. . The- equipment includes. British 
result is a series of machines Petroleum, Esso Chemicals, Blue 
which are small, neat and easy Cirde Group arid the National 


to operate. 

The cluster of switches and 
knobs which bedecked the 
earlier range have given way 
to the kind of keypad which 
characterises microprocessor 
driven equipment these days. 

The price is about £10.000. 
about the same as the previous 
generation, of equipment but 
it is expected to fall with 
volume sales. 

The principle . of X-ray 
fluorescence analysis is old 
established. A radioisotope is 
used to irradiate a sample: 
energy, changes in the nucleus 
of the atoms under investiga- 
tion result in X-rays being 
emitted which are picked up 
and counted using a system of 
sensors and electronic -circuitry. 

The new analyser is expected 
to be used by those- industries 
already making use of the 


Coal Board. 

They are being used to track 
‘lead levels in London dust. 

The microprocessor control 
which distinguishes - the new 
X-ray analysers are similar to 
those, used, in Oxford's other 
principal product line, the 
nuclear " magnetic resonance 
analyser. ' 

Mr Barrie Marson. managing 
director of Oxford Instruments, 
said this week he was arltious 
to add a third siring to the 
company's bow. 

It was unlikely the company 
would start development of a 
-new analytical product from 
scratch: he was interested in 
acquiring a company with skills 
complementary ‘ to the existing 
members of the group: 

More from Oxford on 0865 
770361. 


Bandsaws from Startrite 


BANDSAWS for either vertical 
or horizontal use designated 
the Startrite H1T5 and H230A 
(illustrated above with an 
optional in-feed roller table) 
have been introduced: by the 
Startrite Machine Tool Com- 
pany. a member of .The 600 
Group. ' 

The H175 has a horizontal 
capacity of 37Smm x 280mm a}. 
90 degrees and 130 Dim diameter, 
at 45 degrees. Vertical capacity- 
is 320 ram height tinder guide 
and 200 ram throat depth. The 
machine offers three blade 
speeds of 18-30-48 ■ m/min. 


Band wheel diameter is 280 mm. 
Power is: provided by a single 
phase threequarier hp motor. 

The H250A is a 250 mm 
diameter capacity model, 
powered, by a. three, phase 2 hp 
blade drive, a quarter hp 
hydraulic pump and quarter 
hp stock - -feed motor. Band 
wheel diameter is 355ram and 
there axe five band speeds of 
15-24-3^61-92 m/min. 

It can- cut stock to pre- 
determined lengths from 0.5 to 
600 znm. Full details from 
Startrite at 625, Princes Road, 
Dartford, Kent. (03222 £538} . 


4 Fused silica winner 

If you have an electric fire 
in your bathroom with one of 
those transluscent solid glow- 
ing elements, or use such 
infra-red healers in an iridus- 
trial process, the chances arc 
that the element, . actually a 
tube of fused silica, was made 
by Thermal Syndicate of; 

WaUsend, Tyne and Wear. 

For a new process the com- 
pany developed to make these 
tubes, it was recently a 
Queen's Award winner. ■ . 

TSL supplies" a significant 
proportion of the world mar- 
ket for transluseent - fused- 
silica tubing, which has been 
made traditionally by a multi- 
stage process involving the . 
production of an ingot arid, its - 
conversion in a secondary 
fusion process to produce the 
final tubing. -7. 


Losses occurring at each 
stage and hour ' labour and 
energy costs, meant that this 
process was becoming uncom- 
petitive in some markets.- _ 

. . The new' process involves a 
single stage fusion, tq give 
a- saleable product with . no 
intermediate stages.- Refined 
silica sand is continuously fed ■ 
into an electrically, heated 
furnace and tubing ~ of - the 
required size is drawn directly, 
from the melt 


Major advantages over 
earlier processes include 
economy of raw materials 
(little of the glass is lost and 
the yield of tubing is hl£i), 
reduced electrical energy 
use, lower labour content and 
better process control. 

. . In addition, the working 
environment has been greatly 
improved because the new 
process avoids. The emission 
of noxious fumes, the hand- 
ling of hot ingots and the 
mechanical grinding processes 
- tint were, called for in the 
previous, process. .' 

TSL is the largest maker 
of vitrous silica ; products in 
the UK and ranks as one of 

the most .Important.; In -the 
world, with ' wholly, owned 
subsidiaries: in Germany and 
the UB. 

The material'll makes is 
particularly. Important in 
heating, technology, because It 
Is chemically inert, stable at 
high temperatures, and able 
to . withstand sudden changes 
In temperature. 

Thermal expansion is low. 
electrical resistance; high («*• 
abting -an. internal heater 
winding to be easily, held in * 
tube) and above ,aIU dt- te 
transparent lo Inf nwred radia- 
tion. 


‘ 6.C. '' 





Financial Tillies Friday May 14 19S2 


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FINANCIAL TIMES SURVEY 



15 


Friday, May 14, 1982 


MILTON 



Heading towards 
the targets 


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NEW ROADS carve through 
the Buckinghamshire country- 
side and gaunt buildings me 
out of ante green fields as 
Milton Keynes’ planners press 
ahead with their aim to create 
a new city of 250.UU0 people. 

The population, already 
more than lOO.QOO, is "rowing 
at a rate of up Lo 7.000 a year. 
Jn spile of recession, house- 
building is noanng record 
levels. The city boasis -tiie 
largest covered shopping centre 
in Europe” and factories are 
going up apace. Companies are 
being attracted, many from 
overseas, and new jobs created. 
Now, with more than 400,000 
sq ft of new offices either rant- 
plated or under ions! ruction, 
the city is stalling its claim as 
a major regional office centre 
for commerce. 

Such progress is the more re- 
markable given the controversy 


Survey written by 
Arthur Smith 
Midlands Correspondent 


and questions raised about 
Milton Keynes since planners 
in the optimism of the early 
1960s suggested a new city to 
act as a " counter-magnet " to 
London with The dual purpose 
of easing the pressure of popu- 
lation and jobs in the South- 
East. The assumptions of econo- 
mic growth and population ex- 
pansion upon which rhe plans 
were based have changed but 
Milton Keynes goes on. 

Cynics might suggest that the 
development corporation, with 
a greenfield site was always 
on to a winner. So many public 1980s. 


re-nurces had to be committed 
:n advance in the form of mails 
and other facilities that any 
government winch relied a halt 
woitld be saddled with rhe per- 
manent poll i ical embarrassment 
of stare funds wasting in ihe 
fields of Kuckinbaimihirc. 

But much of the success of 
Mil! on Xt-yiu^ nv.:sT ret with 
The development corporation’s 
chairman, ihe colourful Lord 
CampoeH— a man -,vho from 
childhood in a castle in Ire laud, 
went Through Eton and Oxford 
to play a reforming role in the 
sugar plantations of the West 
Inches. He remains a committed 
member of the Labour Party. 

Lord Campbell retire? shortly 
after 16 years in the ho! seal 
at Milton Keynes during which 
per. od government and 
ministers have come and gone. 
He is m>idest about h.i contri- 
bution. “ Wc have nud a power- 
ful and influential board That 
know's a good deal about poli- 
tical in-fighting. which battle* 
to fight, and when to live to 
fight another day. We knuw 
where we are going and 
nobody is going to stop us,” 

Milton Keynes since Its 
designation in March 1967 has 
been the subject of numerous 
reviews by cenLmi government 
bur the biggest threat came in 
197 fr when Mr peter Shore, 
Environment Secretary in the 
Labour Government, spell out 
the need to concentrate re- 
sources on the inner cities. 
There were audible sighs of re- 
lief from Milton Keynes when 
he subsequently announced in 
fairly bland terras that the 
development corporation would 
be necessary only until the city 
reached a population of 180,000 
to 200,000. which was likely to 
be achieved by the end of the 



CONTENTS^?? 


Information technology: setting up an exchange 



Shopping centre: success on a big scale 

“i 

Profiles: 

■ 5 

Development Corporation 

Hi 

>LAT Fleet Services 

n I 

Pericom 

n! 

*i 

Office market: making a regional centre 

ivj: 

Industry: losing jobs and creating them 


Housing: private building goes apace 

i\ t ! 

Profile: Lord Campbell — maverick Peer 

i\'| 


VISITORS AND FOUNTAIN AT THE SHOPPING CENTRE 


Today's opening of the new railway station is anorher landmark in 
the development of one of Britain’s last New Towns. Despite 
the recession, housebuilding is at near record levels and industry 
is achieving real growth. And the population is climbing steadily. 


The city scored attain when 
Mr Michael Heseltine, the cur- 
rent Conservative Environment 
Secretary, came to a similar 
conclusion in February last 
year. Planners are still work- 
ing to a long-term target of 
250,000 population. The time- 
scale and the exact date at 
which the development corpo- 
ration is to he wound up have 
been fudged. 

Perhaps the best illustration 
of Milton Keynes’ ability to 
tack with the political tide has 
come in the past couple of 


years. The new city, if any- 
thing a symbol of state inter- 
vention and dirigLste planning, 
provides a sparkling example 
for Ihe Conservative Govern- 
ment of how best to harness 
private enterprise and initia- 
tive. 

Private investment has been 
attracted on a remarkable 
scale to compensate for the cuts 
in public spending enforced 
since May 1979 under the 
present Government. Mr Frank 
Henshaw, general manager of 
the development corporation. 


reports that private funding has 
more than trebled over the past 
four years to £S0m a year. 

The most spectacular turn- 
round has been in housing, 
where the development corpora- 
tion’s building programme of 
more than 2,000 homes a year 
has been stopped m its tracks. 
Those already programmed will 
be completed but no new build- 
ing is planned. The gap is 
being filled by private house- 
building— a sector extremely 
depressed in other parts of the 
country. 


" In Millor. Keynes developers 
have responded well. They are 
building like there is no tomor- 
row'." enthuses Mr Allen Duff, 
ihe commercial director. The 
corporation set a target of 
1,000 private houses in the finan- 
cial year that has just ended 
and overshot by nearly 20 per 
cent. There are hopes that 
this year's aim of 1,200 houses 
will also be exceeded. 

In addition, the corporation 
is pushing shared ownership 
schemes and wants 750 such 
homes to be completed within 


the next 12 months. Under 
the schemes aimed at reducing 
the initial cost of home owner- 
ship purchasers can buy any- 
thing from 30 to 70 per cent 
of the equity in the house and 
pay rent on the balance. 

Local estate agents report 
that house prices in Milton 
Keynes, contrary to national 
trends, rose by about 6 per 
cent last year. They attribute 
the interest of private 
developers to the steady flow 
of land coming on to the 
market, the rapid growth of 
population and jobs, and per- 
haps most importantly, the 
new-found confidence in the 
city. 

Mr Derek Saban. a banker 
and president of the Chamber 
of Commerce, argues that the 
city has met the recession 
stronger and more self confi- 
dent. "Things had gone so 
well for the city through 197S 
and 1979 that there was a feel- 
ing of elation. There was also 
a fear that we might be talking 
each other into how good things 
were — that the bubble might 
burst." 

In the event, Mr Saban says, 
while companies did shake out 
labour and there were some 
closures, industry achieved real 
growth. " We might have gone 
through a slight downturn but 
it is nothing like that suffered 
elsewhere.” 


A key to the momentum tbatg 
the new city has established isS 
the success of the 1m sq ft} 
covered shopping centra 
opened less than three year^f 
ago. Most of the big retaili 
names have been anracted to| 
the centre and shoppers are^ 
pulled in from a wide area— ■* 
some travelling for up to 90? 
minutes. i 

The shops are conventional 
but the setting dramatic:' 
Glass-covered walkways 

decorated with palms, cacti 
and other exotic shrubbery 
stretch for a quarter of a mile. 
The fiat shopping complex, 
surrounded by thousands of car 
parking spaces, has an 
atmosphere of its own — a com- 
bination of the functional with 
the eerily futuristic. 

Mr Duff is now able to laugh 
at the cynics who forecast that 
the project would be an expen- 
sive white elephant. He recalls 
how he sold the scheme to fund 
managers. “ I used to drive 
them out across the fields in 
a Land-Rover and say: "There’s 
the site. How do you want to 
spend your millions’." 

Lord Campbell also remem- 
bers those who forecast that the 
centre could be a ghost town. , 
But he adds: " I have got strong 
nerves — the courage of my con- 
victions." 

The visit of the Queen to 
officially open the centre in 


CONTINUED ON NEXT PAGE 



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Data Communications 


Message Switches 



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Direct Speech 








For over 80 yearsTelephone Rentals has planned and provided cost effective communications to 
commercial organisations of every kind, largeand small. To individual needs. 

Nothing else... 

Always keeping abreast of, frequently influencing, the development of business 
'communications, the company hasexpanded progressively over the years. It has a deservedly 
high reputation forfastand reliable service. 

Service in commercial consultation, service in Hs concern for the needs of its customers, in the 
reliability and suitability-of-purpose of its equipment, in the high level of its maintenance service. 
This is the success of Telephone Rentals. 

A £125 million company operating throughout the British Isles and overseas. 

An organisation with its own custom-built headquarters at Milton Keynes and a nationwide sales 
and service network based on 20 strategically sited local offices. Afield force of some 800 
engineers trained to its own high standards of installation and maintenance skilisfrom atotal 
company strength approaching 3,000 employees giving unbiased.construclive, help and advice. 

Telephone Rentals is an independent British 
company. 

Firmly in the forefront of todays communications 
and information revolution, it is concerned to 
bring the benefits of current technology to its 
customers now as a basis for the emerging 
requirements of tire electronic office of 
tomorrow And to bring the full benefits to users 
arising from liberalisation of the British Telecom 
monopoly 

ThatisTelephone Rentals. 

A company to talk to. 

About your business communications. 


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16 


Financial. Times. 'Friday May..-I4 1982 


MILTON KEYNES H 


The city seeks vital role in Information Technology 

Luring IT, the new industry 


MILTON KEYNES in The year 
dubbed by the Government as 
■* information technology year " 
is pushing itself as the national 
centre of excellence for new 

• technology. IT (information 
technology/ the vogue terra for 
computer-based products that 

.store, process and pass on 

• information is a big new tndus- 
-try for which Miiton Keynes is 
.particularly suited says Mr 
Prank Henshaw. the general 
manager of the Development 

■- Corporation. The corporation is 
setting the pace by establish- 
ing what it maintains is a 
unique information technology 
exchange which will open in 
the autumn within the new Tail- 
way station complex. 

Mr Eric Bird, a computer 
expert, has already been 
recruited from the private 
sector to head the operation. 
Advice, information and train- 
ing will be given to help local 
' businessmen and to gain a 
share of the new industry for 
.Mil con Keynes. 

Mr Bird, a chartered secre- 
tary senior executive with ICL 
and computer consultant, 

' leaned Milton Keynes from the 


National Computing Centre, an 
independent advisory service 
set up by the Government He 
opened the micro-computer 
centre in London last year, one 
of 20 exhibition centres 
planned throughout the UK. 

Mr Bird hopes Milton Keynes 
will be chosen for one of the 
exhibition centres but points 
out that the exchange will have 
a much brogder role. “The 
prime objective is to attract 
business to Milton Keynes." be 
says. The aim was to make 
local industry aware of the 
benefits of IT — “IT makes a 
company more profitable.’' 
Also there was a need to attract 
the providers of IT to the city. 

Head start 

Milton Keynes already has a 
head start, he maintains, to the 
extent that about 100 companies 
with connections with the 
industry are trading from tbe 
city. Representatives range 
from Burroughs, one of the 
world’s largest computer com- 
panies, to one man operations. 

Mr Bird says that there are 
four main business applications 


for it: ledger-keeping '(routine 
administration of accounts), 
financial modelling (sales and 
profit projections), word pro- 
cessing (pushing out letters), 
and the staring and retrieval 
of information. 

The exchange will provide 
basic information, education 
and training in the use of such 
systems. Consultancy services 
will be offered along with facili- 
ties to rent or test systems. IT 
suppliers will also exhibit their 
products so that businessmen 
know what is on the market. 
The exchange, to ma i ntain im- 
partiality, will not be involved 
in the retail end of the busi- 
ness. It will, however, charge 
for service given and the aim is 
to achieve breakeven for the 
operation within three to four 
years. 

The imm ediate emphasis will 
be upon helping business, but 
Mr Bird believes that the ex- 
change may eventually offer a 
service to the general public. 
“In the not-too-distant future 
the combination of the com- 
puter, telephone links and the 
television set has considerable 
potential for education and 


leisure use" 

He foresees IT systems being 
used for purposes such as 
remedial education for teach- 
ing, evening classes for adults 
or leisure pursuits for the un- 
employed. 

Milton Keynes has always 
had an eye for technological 
change. Ail houses built since 
the late 1960s have been linked 
to a city-wide co-axial cable 
system. British Telecom is now 
carrying out a pilot scheme 
using fibre optics to transmit 
television programmes. 

The Development Corpora- 
tion, in association with the 
Department of Industry, Is also 
promoting the use of IT within 
the home. A show-house on a 
private estate will be opened 
later this year to demonstrate 
the possible applications of IT 
which might be common in the 
average household within five 
years. 

Services likely to be fitted 
include controls over lighting, 
heating and energy consump- 
tion. entertainment guides, 
links with the office and facili- 
ties for home shopping and 
banking. 


Heading for targets 


CONTINUED FROM PREVIOUS PAGE 


June 1979 had a catalytic effect, 
he says. “ Thousands of people 
turned out. I am not a great 
monarchist but the Queen was 
magnificent I was spellbound. 
From that moment Milton 
Keynes gelled." 

The shopping complex has 
provided a focus for the new 
city, diverting attention from 
the previous local centres of 
BletcfhJey, Wolverton and Stony 
Stratford. Equally important to 
the city hag been the influx 
of important industrialists and 
"the creation of a balanced and 
diversified local economy. 

Major companies recruited 
. include Rank Xerox, Tesco, 
Hoechst and Coca-Cola. The 
aim has been to attract a 
spread of companies an order 
to avoid dependence on any 
large employer or industry, with 
the emphasis put on high- 
technology growth sectors. 

Milton Keynes, just 50 miles 
north of London and astride 
the main motorway and rail 
networks, has been quack to 


advertise its- accessibility to 
consumer markets. 

To press home the city's 
-advantages this year, the 
development corporation is set- 
ting up what it maintains will 
be a unique information tech- 
nology exchange. A full-time 
manager has been appointed 
with the aim of attracting new- 
comers and educating local 
industry -to the management 
potential offered by combining 
the resources of the computer, 
-telephone links and the . tele- 
vision screen. 

The corporation, in an 
analysis of future growth indus- 
tries, identified changes in office 
equipment and products as an 
important sector and believes 
tbe exchange could give Milton 
Keynes the chance to establish 
Itself as a leading centre in 
the UK 

The city’s olaims are advanced 
by the fact it has already 
attracted leaders in office equip- 
ment such as Burroughs, 
Olivetti, Telephone Rentals and 
Minolta. 


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The exchange in the short 
term will be located in offices 
linked to the new r&rtway 
station, which opens today. The 
station, one of the few new 
terminals <to be opened this 
century, is expected to help 
establish Milton Keynes as an 
important regional office centre. 
A regular *rain service will put 
Euston within 40 minutes of 
the dew city centre. 

Mr Duff is predictably confi- 


dent that the city will attract 
large tenants. Milton Keynes 
confounded the sceptics to 
establish Itself as an industrial 
and retail centre, be says. Over 
the past year with the national 
economy in deep recession, tbe 
development corporation bad let 
more than 500,000 sq ft of 
industrial space. "If we can 
do that during the downturn, 
what will MtUon Keynes do 
when the economy picks up?” . 


WHY WE NEED 
SIX MANAGERS IN 
A BRANCH 
WHERE YOU CANT 
EVEN CASH A 
CHEQUE 

Our Ashton House branch is more than a little unusual 

There are no cashiers, for example. In feet, there are very few of the 
fedlities you’ve come to expect from an ordinary branch. 

That’s because itfs solely a business finance and advice centre: An office 
where Milton Keynes businessmen can consult six highly experienced managers, 
on anything from new plant to the feasibility of breaking into new export 
markets. 

Each manager has specialist skills and a deep understanding of local 
commerce and industry, together with the ability to analyse and help solve the 
wide variety of problems it feces. 

Especially in times like these. 

And as one manager has considerable experience of working in Barclays 
Bank International, we can also advise on any aspect of international finannp, 
such as currency lending dealing and ECGD backed finance. 

Of course, for more conventional banking needs there are five other 
Barclays offices in the area acting as one branch. 

Just open an account and you’ll be free to make deposits and with- 
drawals at any of the five, without prior arrangement or the usual formalities 
ofidentificarion. 

AshtonHouseoffersthebestpossiblepmfessionalban^ingserviceforbusinesses 
in Milton Keynes. 

Even if we carft actually cash you a cheque. 



BARCLAYS 


Please call Milton Keynes 661616 for an appointment at Ashton Houses 
SilburyBouIerard J MiltonKe^es,orypnr own of 



Use of 
shopping 
centre 
widens 

MILTON KEYNES took a 
risk when it decided to press 
ahead with a 1m sq ft retail 
centre rather than phasing 
the project as originally 
planned. A population of only 
100.000 ' hardly justified 
shopping on that scale. 

Fortunately, the move paid 
off. The project was funded 
privately and the city has 
quickly established itself as a 
regional shopping centre with 
most of the best-known 
retailers represented. 

A survey jnst ^published by 
tbe Unit for Retail Planning 
Information concludes that 
the eentre is “a major 
regional attraction. " The sur- 
vey points out that on a 
Saturday, tirade is drawn from 
well outside the city with 
some people making; a 
journey of 90 minutes or 
more to use the shops. 

The number of visits made 
to the shopping centre has 
jumped 40 per cent over the 
almost three years since it 
opened, doubling on some 
weekdays. Saturday shopping 
still accounts for 32 per cent 
of all visits hut there is now 
a much smoother pattern of 
trading across the week. 
While shoppers tend to spend 
no more in real terms on each 
visit, the growth in use of 
the centre has pushed up 
turnover. 

Staton Keynes is clearly 
competing with other nearby 
centres such as Northampton, 
Bedford and Lnton, though 
ho statistics are .available to 
identify what impact the new 
city is having on its neigh- 
bours. Indeed, in a time of 
recession it would be impos- 
sible to assess whether 
takings had changed merely 
because of reduced spending 
power. - 

The retail planning unit’s 
survey does highlight one 
aspect which the authors say 
appears to be related to the 
Increase In unemployment 
and a reflection of changes in 
the national economy: a lower 
proportion of shoppers using 
the centre come from semt 
skilled and unskilled manual 
households. 

Visitors tend to be much 
younger than the national 
average with half of them 
under age 35. The large 
proportion of shoppers from 
white-cottar households and 
the very high levels of car 
ownership Indicate that 
Milton Keynes shoppers are 
both more affluent and more 
mobile than the national 
average: 


Free parking 


The free parking around 
the shopping complex Is an 
obvious advantage for Milton 
Keynes ever surrounding 
towns. Tbe .avenge time 
visitors spend parking the car 
and walking to the centre is 
pot at only 4j- mi nates. 

Shops In the centre axe In 
demand. Only one or two 
small units remain uni et and 
that is because of restrictions 
Imposed by the development 
corporation in order to obtain 
the required spread of retail- 
ing: 

Developers are interested in 
further retail projects — there 
is thought to he demand for 
a hypermarket mid large dis- 
count store. Sites are avail- 
able near the city centre but 
the development corporation 
undoubtedly -will want any 
project to complement and 
support the success of the 
present complex rather than 
act as a counter-magnet 

The dear hierarchy of shop- 
ping for the new city laid 
down 15 years ago in the 
master plan — local shops, dis- 
trict centres and the main 
centre— has been blurred by 
changes In retailing. A large 
supermarket then was 10,000 
sq ft — now it is 50,000 sq ft 
plus. 

The town of Bletchiey, 
which serves an area of about 
30,000 people In the south OF 
Milton Keynes, acted for 
seven years or so as the tem- 
porary main centre. During 
that period the Brand Centre 
of about 20 shops was built 
but tbe Ud was kept on 
development to prevent It 
emerging as a rival to the 
planned new complex. Bletch- 
ley now has reverted to Its 
position as traditional district 
centre. 

Two other district centres 
of similar scale, one in the 
east of the city and one in the 
west, were originally planned. 
But it now seems likely that 
the development corporation 
will proceed on a more prag- 
matic basis, trying to. balance 
local shopping requirements 
and the demand for more 
specialist services. The ease 
for locating any hypermarket 
away from the central area 
undoubtedly win be con- 
sidered but Its effect on other 
retail patterns would be 
important. 

Another issue for the 
development corporation is 
the provision of commercial 
leisure facilities such as 
hotels and restaurants. Mr 
Frank Henshaw, tbe general 
manager, points out that tbe 
city has three large and 
successful sporting leisure 
centres but weak on- 
amenities ' provided by the 
private sector. “That is going 
to be a top priority over the 
next few years,” he says; 


itSF 1 " 



Ron. Graggs with some 0/ his computers. He has just moved to a 
bigger factory for the second time 


PROFILE: PERICOM 

Flexibility pays off 


MB. RON CRAGGS at the age 
of 28 moved to Mil ton Keynes 
to set tip a three-man busi- 
ness supplying the computer 
industry. Expansion has 
been, rapid. Seven yews later, 
he has just moved into a 
bigger factory for the second 
time, employs 83 workers 
and has a £4au a year turn- 
over. 

He estimates that it may be 
another throe years before he 
outgrows his present 28,000 
sq ft factory on the Blake- 
lands estate but is convinced 
rapid growth will continue. 
Mr Craggs was sales director 
• of a Croydon company 
distributing components for 
the computer industry when 
he decided to join, with two 
colleagues to set up his own 
company, Pericom. “That 
was in - 1975," he said. 
“Initially we distributed 
other people’s brands but the 
- aim was to design and make 
our own products.” * 

Pericom started as. a supplier 
of micro-processor based. 


computer terminals but now 
offers a complete range of 
systems suitable for all 
types of business application, 
Mr Craggs maintains. - - 

He took a 3,500 sq ft unit in 
the Kiln Farm estate in 1978 
but expansion forced him to 
switch to a nearby 12,000 sq ft 
unit within two- years:' Why, 
given the choice of the UK, 
did he establish his company 
in MSton Keynes? 

“The electronics industry is 
concentrated in London and 
the Ranh.' Operating from 
Croydon I was tired of the 
journey across London to get 
to my customers. The ideal 
location was to the north of 
greater London fact with 
easy access to the capital.” 

He was lookiDg for a develop- 
ing area with space imme- 
diately available. “I made 
one visit to Milton Keynes 
and that was it The unit 
was ready and I completed 
the formalities and moved in 
within four weeks.’ r - 

In Croydon rents would have 


. been higher and labour more 
difficult to recruit, he ^ays. 
* Nobody wants to know you 
when, you start up in busi- 
ness but Milton Keynes was 
prepared to take the risk." 
Also important to the develop- 
ment of Pericom, Mr Craggs 
says, has been the flexibility 
to move quickly, into larger 
premises. “It has - been 
possible to keep overheads : to 
the nrimmum and expand 
when the market justified a 

- move.” The development 
corporation in . order to 
encourage the growth oLnew 

- companies allows them to 
> surrender their lease- without 

a penalty and move elsewhere 
in the city. 

Mr Craggs maintains that in 
tbe recruitment of labour he 
•has never had to look outside 
the immediate area ' of 
Milton Keynes. “In' the early 
days when we were a new 
v company 3t was more difficult 
but we have . found local 
people are able to meet even 
our specialist requirements.'' 


PROFILE: MAT FLEET SERVICES 


Finding 
the right 
strategy 

MAT fleet Services, the road 
haulage divirion of an inter- 
national company, attributes 
Its survival to a rationalisa- 
tion programme that involved 
a move to Milton Keynes. Mr 
Ray AUeock, the chief execu- 
tive, says : “Not only have we 
survived the recession but we 
have- transformed a thumping 
loss into a profit” 

The company with a £4L5m 
a year turnover is now able 
to offer lower haulage rates 
than two years ago and still 
trade profitably in spite of a 
30 per cent drop in the 
volume of business and a 
rapid rise in costs. 

Three years ago as a man- 
agement consultant with an 
outside firm of transport 
specialists. Hr Allcock was 
called upon by MJLQ to 
recommend a strategy for the 
loss-making road haulage divi- 
sion. He advised concen- 
trating' the southern 
operations, then spread' over 
three depots at Felixstowe, 
Peterborough and Cowley in 
one site at Milton Keynes. 

He says his reeommea- 



Ray Allcock: putting his money where Hs : mouth is 


dation followed a detailed 
study of motorway' links, 
traffic density and legislation 
covering the working hours 
at drivers. 

* MAT then as good as told 
me to put my money where 
my mouth was and appointed 
me as chief execntlve to 
carry out the strategy.” Mr 
Allcock laughs, “fortunately 
for me and them, it has 
worked.” 

The headquarters of MAT 
Fleet Services is now based 
at Hilton Keynes with respon- 
sibility for two other depots 
at Hull and Manchester. 


Management control is- from 
Milton Keynes rather than 
from the London head- 
quarters of the group, which 
has a f 70m turnover in freight 
forwarding, packaging and 
security transport 
Manpower of the road 
haulage operation has been 
cut from 185 to 116, mostly by 
natural wastage. Mr ADcock 
reports that most of the 50 
employees at- Milton Keynes 
have been moved from other 
parts of the operation. “The 
ready availability of bousing 
bad made the transition 
easy,” he says. 


PROFILE: DEVELOPMENT CORPORATION 


Selling to Japan and U.S. 


PROMOTION of Milton Keynes 
is big business. Last year the 
city spent £650,000 on adver- 
tising. This year, it is likely to 
be £750,000. But the Develop- 
ment Corporation knows which 
markets it is aiming at and 
why. 

Mr Mike Russell, aged 50, an 
electronics engineer with inter- 
national experience as a man- 
agement consultant, has been 
recruited from the private sec- 
tor. His task is to sell Miiton 
Keynes to the Japanese. The 
approach, however, will not be 
through glossy advertisements 
but personal contacts. 

“Japan Is. likely to be placing 
a lot of- tiew investment in 
Europe over the next few years. 
It may start as a sales operation 
but will probably result in local 
manufacturing. Japan has a lot 
of good management. If you 
cannot beat them we might as 
well join them,” Mr Russell 
argues. 

Greenfield sites 

Milton Keynes, with six 
Japanese companies including 
Minolta already operating from 
the city believes it has some- 
thing to offer— greenfield sites,- 
good labour relations and rapid 
access to consumer markets. " 

But Mr Russell makes, clear 
that the city is not bidding for 
projects such as- tbe proposed 
Nissan car plant that might be 
located in the UK Milton 
Keynes would not want to be 
dependent upon such large- 
scale operations but -would ex- 
pect to benefit from- the spin- 
off contracts.' 

Mr Russell believes the way 
to win tire confidence of the 
Japanese- is through establish- 


ing good contacts and building 
personal relationships. He talks 
regularly to companies already 
operating in the UK and to the 
Japanese banks and trading 
houses. “ We also have a 
Raison officer In Tokyo who 
looks after us. on a part-time 
basis." 

Mr Russell stresses the need 
to visit Japan for a two-week 
stay at least twice a year. “Then 
it is .a question erf meeting 
people on a first-hand basis and 
telling them what we can offer 
and what are tile benefits of 
Milton Keynes." 

Mr Russell, apart from his 
Japanese duties, heads up. the 
Development Corporation's 
“ target marketing group.?’ This 
body of 11 specialists has the 
task of identifying growth sec- 
tors as weH as of establishing 
Milton Keynes’ claims to play 
v a' role in realising that - expan- 
sion. 

He says that the group spot- 
lights' sectora such as- elec- 
tronics, plastics, processing and 
pharmaceutical? particularly 
suited to the facilities offered 
at Milton Keynes. “ We would 
not be interested in heavy 
engineering because of the en- 
..virtimnental problems of- noise 
and pollution," he says. 

further detailed research is 
done on likely marker trends 
so that officers of the Develon- 
ment Corporation can hold 
informed discussions with indi- 
vidual companies. “ We go and 
talk to companies whether. they 
are considering a move or not. 
We warn them to have Milton 
Keynes hr mind for their future 
planning. We try to . establish 
an on-going dialogue. W e have. 
•got to' demonstrate we know 


. what their problems are." 

Apart from Japan, Miltoi 
Keynes is also making a set fo 
the U.S. as an. important so urn 
of new investment. Mr Russel 
points out that whole Miltoi 
Keynes has been successful ii 
recruiting companies fron 
Western- Europe there was ai 
obvious attraction to manufac 
tore locally and export rathe: 
than move to the UK “Thi 
potential for _ new -investmeo 
from Europe is negligible corr 
.pared with what is on 
from the U.S. and Japan.’ 


offe: 


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Financial Times Friday May 14 1982 






Britain’s newest Inter-City station open May 14, 1982. 

Fora fuiltimefable, contact British Rail. For offices available nearthe newstation, ring Commercial Director, Milton Keynes Development Corporation on (0908) 74000, 























13 


V: ; 



Ashton House and Norfolk House, above, mere let over the past two years. Now 
more office developments at higher rents are coming on the market 


Crucial test coming for a new centre 


Drive for office space 


MILTON KEYNES faces a 
crucial test over the next few 
months in trying to establish 
itself as an important provin- 
cial office centre. More than 

400.000 sq ft of speculative space 
is either available or nearing 
completion in the central area 
of the city. 

Availability on that scale 
marks a dramatic increase. 
Just four years ago there was 
only the 80,000 sq ft Lloyds 
Court building in the central 
area. That was followed by the 

150.000 sq ft civic offices, much 
of which was occupied by 
Milton Keynes borough council 

Ashton House, 66,000 sq ft, 
and Norfolk House, 70,000 sq ft, 
were let over the past two years 
at rents of between £4.50 and 
£6.50 a sq ft. Now a series of 
developments is coming on to 
the market with rents asked for 
of £7 a square foot plus. 

The central offices close to the 
shopping centre and to the new 
railway station are a separate 
prime market. There is about 

750.000 sq ft of accommodation 
in the designated area, either 
in existing centres such as 
Bletchley or on campus sites or 
as part of industrial develop- 
ments. Rents there will vary 
from £3 a square foot for older 
accommodation to perhaps £4.50 
a square foot for small suites. 

An important boost to Milton 
Keynes' claims as an office 
centre has been given by the 
pre-lets already achieved. Sentry 
Insurance has moved from 
London to the recently-com- 
pleted 82.000 sq ft Sentry House. 
The Abbey National Building 
Society is building a 150,000 
sq ft block for its new computer 
centre due for completion early 
next year. The Institute of 
Chartered Accountants is de- 
veloping a 30.000 sq ft office in 


order to move part of its 
administration from London. 


The opening of the new rail- 
way station giving a train ser- 
vice wi thin 40 minutes of 
Euston, is seen as the key to 
the office market. The develop- 
ment corporation is looking for 
and confident of getting a single 
tenant for its 140,000 sq ft cen- 
tra] station block due for com- 
pletion in June. 

Mr John Edwards, office 
agency manager for the 
development corporation, argues 
that a rent of £7.50 a sq f t com- 
bined with rates of less than £2 
a sq ft must make the building 
attractive for companies seek- 
ing to move from London. The 
fast train service will also give 
access for office staff at points 
2 long the line. 


Ideal 


The Development Corporation 
on behalf of Norwich union is 
looki"? for a single tenant for 
its £2.000 so ft SaxoD Court 
develonment, due for completion 
this summer. The three-storey 
fnliv air-conditioned building is 
described as an ideal comoany 
headquarters but is capable of 
sub-division into smaller units 
if necessary. 

Local agents maintain that 
the city's success in establish- 
ing itself first as an industrial 
location and subseauently as a 
sub-remonal shopping centre, 
enhance its attraction for 
offices. The development cor- 
poration argues that the 
property now coming on to the 
market is lmnortant because for 
the first time the city is able 
to offer a wide range of office 
accommodation. Developments 
in the central area are geared 
to meet the demands not only 


y 


SR™ 




MILTON KEYNES CENTRAL 

joins thelnterCity Network 


British Rail’s new station, in the heart of the developing 
city of Milton Keynes, is ideally situated for the 
business traveller. 


Strategically located on the main electrified railway line 
from London Euston to Birmingham and the North, the 
new station will make access easier than ever, to and from 
all parts of the country. 

For details of all train services ring 

01-387 7070 (24 Hours) 


Milton Keynes 70883 


Key to Prestd 221 002 750 


You can pick up a free train service folder at principal 
British Rail stations or British Rail Appointed Travel 
Agents in the area or ring 01-388 487 1 (24 Hours) and ask 
for your free Milton Keynes timetable. 


This is the age of the train 


’ r \ 

Financial Times. Friday May 14 1982 a / 


MILTON KEYNES IV 


PROFILE: 

LORD CAMPBELL 


Unemployment has doubled but new jobs are being attracted 


Chance 


job that 


Industry fighting recession 


paid off 


of outsiders but of growth by 
local industry. 

Mr Edwards says that the 
city’s advantages have now been 
acknowledged. “ Four years ago 
we would not have found our 
way onto the short list of major 
companies considering reloca- 
tion. Now it is almost auto- 
matic.” 


Demonstrating its confidence 
for the future, the development 
corporation plans to start work 
later this year on another 
75,000 sq ft bind: near to the 
railway station and due for com- 
pletion in spring 1984. Mr 
Edwards insists that the Milton 
Keynes market should be strong 
enough to absorb about 150,000 
to 200,000 sq ft of new offices 
each year for the foreseeable 
future. 


LORD "JOCK” CAMPBELL 
retires this year after 16 years 
as chairman of Britain’s most 
controversial New Town. At 
the age of 70 how would the 
man responsible for guiding 
Milton Keynes to a city of 
more than 100,000 like to be 
remembered? 

He smiles over his - half- 
moon spectacles: "I do hope 
they don't name anything 
after me. We are not building 
Milton Keynes N the glory of 
the development corporation 
or individuals, but to the 
glory of the people who live 
and work here.” 

Lord Campbell proudly 
calls Milton Keynes "the 
flagship of the New Towns'* 
and believes "a fine city” 
has been built. "I think we 
have done it elegantly — with 
style.” 

For a new city whose origi- 
nal aim was to help provide 
relief to population pressure 
in London and to rehouse 
people often living in bad 
conditions, the appointment 
of Lord Campbell, with his 
privileged background, might 
at first sight appear surpris- 
ing. 

From Eton and Oxford he 
rose to become chairman of 
Booker McConnell, the inter* 


Estate agents, whfle not 
doubting the logic of the 
development corporation's 
stra tegy for the moment, are 
cautious about the timescale of 
office expansion. They are pre- 
pared to await developments 
before passing judgment on the 
corporation’s bold plan for a 
central business exchange — “an 
office complex more advanced 
in its concept than any of its 
competitor sites in Britain or 
Europe.” 

The idea is to start work at 
the end of nest year on the first 
400,000 sq ft phase of a Im sq ft 
plus complex. Tenants would 
enjoy the benefits of the latest 
in business and communications 
systems, specialist shops, ser- 
vices and conference facilities. 
The complex jvonld embrace 
hotels, restaurants and ocher 
leisure amenities. Mr Edwards 
says talks with the institutions 
about the first phase of the pro- 
ject have already opened. 



Lord Campbell: political 
maverick 


national company with inter- 
ests in sugar, nun, shipping, 
engineering and overseas 
trade. But it was that exper- 
ience which drew him to the 
Labour Party and the realisa- 
tion that “the Establishment’* 
had to be reformed from the 
outside rather than within. 

“It was largely the social 
and political impressions that 
I gained on West Indian sugar 
estates that Inspired my poli- 
tical leanings.” he says. He 
recalls being branded a Com- 
munist in the 1950s for sim- 
ply stating that Bookers be- 
lieved people were “more 
important than ships and 
shops and sugar estates.” 


Knighted by the Conserva- 
tives in 1957 and created a 
life peer by Labour in 1966, 
he says his appointment as 
chairman of Milton Keynes 
development corporation was 
“almost by chance” after he 
derided he had ran Booker 
McConnell long enough and 
wanted to do something else 
before he was too old. 


Hie job has subsequently 
demanded half his working 
time and much of his ener- 
gies. “I have been chairman 
of a good many public and 
private undertakings — big 
and small. None have I foemd 
more complex to direct, bet- 
ter served by their staff or 
more rewarding,” he insists. 

He plays down his political 
Influence in steering the new 
city through the difficult 
periods when questions have 
been posed about Its role and 
purpose. “After all I am a 
bit of a political maverick.” 

And he stresses the role of 
his board. “We know where 
we are going and nobody is 
going to stop us.” But be 
points out that there has 
never been the need to call 
for a vote on any major de- 
cision. “I don’t work by con- 
frontation but by getting 
people to work together.” 

Such a remark is the more 
remarkable given the political 
standing of the development 
corporation, which includes 
not only leading local politi- 
cians but figures such as Sir 
Horace Cutler, Conservative 
leader of the Greater London 
Connell. 

In his 16 years In office he 
confesses only one regret 
though he remains “ unrepen- 
tant.” In the mid-1970s when 
the city was attracting the 
jobs and desperately needed 
to provide housing, it sue- 
combed to government pres- 
sure and embarked on a pro- 
gramme of building low-cost 
system - built booses. “I 
warned in two successive 
a nnu a l reports that we were 
building the shims of the 
future," Lord Campbell says, 
adding that the mistakes 
made in that period were now 
being remedied. 

And what advice would 
Lord Campbell give to his 
successor when he is even- 
tually named as the new 
chairman of MUton Keynes? 
He smiles, pauses, and peers 
thoughtfully over tbe top of 
his spectacles. “None,” he 
says. 


MILTON KEYNES has not 
escaped the full Mast of reces- 
sion. There hove been closures 
and redundancies. Unemploy- 
ment has more then doubled 
over the past two years to reach T. JS 

a level comparable with the 
national average of around 12 
per cent. 

'Where the city is different is 
in its capacity to attract new 
jobs, paitacularfy in the high 
technology growth areas. The 
local economy, atoeady diverse, 
is not vulnerable to the collapse 
of particular companies or 
industries. Even over the past 
12 months with most of the UK 
in deep recession the Develop- 
ment Corporation claims to have 
created more than 3,000 new 
jots and let more than 500,000 
sq ft of industrial ffoorspace. 

The benefits of that were 
offset by the contraction of 
existing operations, but the only 
major job loss was at Scott 
Meats in Bletchley. where more 
than 1,000 workers were made 

T he city is fortunately not dependent on large scale 
Job Centre, reports that redun- production umts. Above: a new factory butldmg in 
dancies tended to be announced the Northfield industrial area 

in batches of 30 to 60. Some 

cent The mein impetus for that has continued over the past two 
business but the ) ump j 0 b- the opening of the city years with Milton Keynes get- 


business but tbe jump m job- 


1 „ „ l ■ 4 » " L_ TT-M Ulti UUWUUIK VI U1G VJUIJ W&UI JUULUU fiGI.- 

less W ^ 1 ^ u ^ d n* retail complex in 1979, wfcich ting a fair share of the new 

a gsnCTHi s niiinn ng • down ot £*«* n w»wi»4- «« knT»« imiMwenUp *■ ai # <v< «-* kuhitiooc 


is so far thought to have created companies setting up business 


w directly another 8,000 jobs. This for tbe first time. 
The number oat of work has .--J _ _ . 


cfiSTed frS j£t 3.000 development corporation 

in March 1980 3 to almost 7,000. has consdouskr aimed its atten-. 

a level whit* according to the ^ n ^ wrtant provrncial office tions at the new entrepreneurs. 


official figure of 15.8 per cent "P , 

is well above the national the early days of expansion 
average. However, the percen- there was inevitably a rapid up 
tage rate is disputed by the surge _ in manual jobs as con 


centre. Small .units are readily avaH- 

Ih the early days of expansion able and companies are free to 
there was inevitably a rapid up- surrender their existing leases 


tage rate is disputed by the surge in manual jobs as con- and move to larger premises as 
development corporation as a struction got under way and their operations grow. Few 
distortion as it is based on the local industry received a stimu- areas in the current investment 
size of the labour force at the tas. From 1968 to 1976 the climate are able to offer such 
last census in 1978. Over the number of building workers flexibility. The development cor- 
past four years thousands more more than quadrupled to nearly potation currently has about 
jobs have been created bringing 4^00. but has since slipped back 500,000 sq ft of industrial space 
the percentage unentofoyed to around 4,000. available in units from 1,400 


back dose to the national norm. The increasing sophistication sq ft up to §0,000 sq ft 


Fair share 


of the local economy is indl- The immediate availability of 


cated by the nearly five-fold q uali ty premises, in the main 
growth of employment in pro- funded by private capital, makes 


little up-to-date research is fessional services to around MUton Keynes an obvious can- 
availaMe, but the structure of 8.300. During the 12 years to didate for companies seeking to 
employment in the new city is 1980 manufacturing employment move headquarters and distri- 
d early changing with a swing increased by 50 per cent from button facilities The city, 
away from manufacturing to 9.414 to 15.700 jobs, while the Iocate a on the main motorway 
service employment and more service sector more than tripled ran network midway be- 
jobs for women. from 8^05 to 26.423. tween London and Birmingham, 

The latest published survey The city is fortunate in its acces s to 30m people 

by the development corporation lack of dependence on large- within two and a half hours ' 
shows that female employment scale units of production. While in* time Even in times of 
had risen by 1980 from 34 per 35 companies employ more than recession companies will be on 
cent of total jobs to 39 per cent 200 workers there are more move hi order to gain 
and was quickly approaching than 1.300 concerns with less economies from rationalisation 
the national average of 42 per than 10 employees. The trend and improved access to markets. 


Rapid pace of 


Tbe Development Corporation 
is also aware of the advantages 
that its greenfield sites and 
record of industrial relations 
offer to international concerns 
seeking a presence in the UK 
More than 100 overseas com- 
panies have already moved to 
the city. In the short term the 


corporation is concentrating 
attention upon the US. and 
Japan as two countries likely 
. to make important investments 
in the UK. 

In smoothing the path for 
new investment the Develop- 
ment Corporation is "aMe to 
point: out. that few companies 
have experienced difficulty in 
recruiting the desired standards 
of labour and that sufficient 
housing is normally readily 
available for staff. The range of 
terms on which premises can 
be bmfflt, leasehold or freehold, 
is a further attraction, foHowing 
the concern of the present 
Conservative administration to 
increase the role of private 
capital. 

The issue on which the 1 
Development : Corporation 

appears most sensitive is the 
charge that it is competing 
alongside the depressed areas 
for the restricted number of 
mobile • jobs available in 
Britain's currently depressed 
economy. 

Mr Frank Hensfaaw, the 
general manager, concedes that 
Milton Keynes is competing for 
limited resources but argues 
that the city has a comple- 
mentary role in creating the 
right environment in which new 
industry can thrive. Only 10 
per cent of the jobs at Milton 
Keynes had come directly from 
London where there was a long 
term problem ' of decline. 
Employment would have gone 
anyway regardless of tbe 
existence of Milton Keynes. The 
new city provided a tocos tor 
new employment and took the 
pressure off other areas in the 
Home Counties. 

While the rest of the country 
debates whether or not White- 
hall and Westminster are 
premature in discussing an 
improvement in the national 
economy, MUton Keynes is 
already talking ot an upturn. 

. Mr Henry Williams, industrial 
agency manager tor the develop- 
ment corporation,' maintains 
that inquiries for factory and 
warehouse space began to pick 
up as early as last June. Let- 
tings had continued in spite of 
recession and the development 
corporation remained on target 
to make available about 650,000 
sq ft of space each year. 

Mr Humphries at the Job 
Centre, while more cautions 
about trends, points put that 
the level . of vacancies notified 
has risen sharply from 6,400 to 
7,500 — a level broadly similar 
to that of Jour years ago before 
the recession 'took hold. . His 
experience contrasts with that 
of surrounding towns such as 
Luton where vacancies remain 
about 25 per cent down. 


house-building 


TOP 20 COMPANIES IN MILTON KEYNES 

More than 1,000 employees: 300 to 500 employees (cont): 

British Rail Engineering Allen Bradley 

Llewellyn Construction 
Tesco 


THE RAPID pace of private The trend towards middle- 
house-building in Milton Keynes class employment will now 
contrasts starkly with much of accelerate as the city strives to 

Z £S£ 


Open University 

5O0-1.OOO employees: 
Barclays Bank 
General Motors 
John Lewis Partnership 
Marconi Avionics 
VAG 


costing from £15,000 to £80,000 Provincial office centre, 
are currently tinder way. The attraction of 


are currently under way. The attraction of Milton 

The Development Corporation * *?“■* * hous, j toel °P er ? 
riaime ’that nitv aiinne is a bihty to create new employ 


claims that the city alone is 


300 to 500 employees: 

Sentry Insurance . 
McCorquodale Printers 
British Telecomm Engrng. 


200 to 300 employees: 

Hoechst UK 
Terrapin International 
Myson Coppered 
Westland Helicopters 
Telephone Rentals 
Aquascutum 

Meat & livestock Commission 
1- April 1981. 


responsible tor around 2 per * toe high 

cent of the houses built 


throughout Britain-each year/ «** haa “ ex ? andln f 

population and employment 
In the last financial year coupled with fairly stRble land 
ivelopers completed 1,189 values. The Development «Cor- 


derekrpers completed 


houses — 20 per cent over the poration controls the release of 
target The objective this year land. 


C. G. HOLTON & SONS LTD. 

ROAD TRANSPORT CONTRACTORS 


Established 19 33 


is 1200 houses, though there is 
confidence it will again be 
easily exceeded. 

The pace of building is 


" The city also benefits from a 
ripple effect as house prices in 
the outer London area continue 
is to rise. Many of the newcomers 


clearly crucial to toe success t0 ftQjUuj Keynes move from 
oF a new town like Milton higher-priced housing in North 


Keynes with its planned rapid London, Watford, St Albans, 
rate of population growth. The Luton and Hemel Hempstead. 


election in May 1979 of a 
Conservative Government com- 


For a Government committed 


★ NATIONWIDE TRANSPORT SERVICE 

★ ALL TYPES OF VEHICLES AVAILABLE 

OLD STRATFORD 
MILTON KEYNES 

TEL: (0908) 547147/545551/548065 


1 mirted to cutting public support home ownership Milton 
for housing in favour of the Keynes provides a good example - 


private sector could have posed not only because of the extent 
a threat of new private developments. 

There has also been a rapid 
Gove rnment cots growth in shared ownership, 
_ _ , _ under which buyers can take 

The Development corpora- anything from 80 to 70 per cent 


Government cots 


NEW CENTRAL STATION 


PATENT GLAZING & ROO FLIGHTS 


tion, conscious that it had to of the equity in a new house 
give toe lead to inspire confi- and pay rent on the balance. 


dence in the new city, had 
started a programme to build 


The Development Corporation 


2,000 houses a year for rent, reports strong demand for 
That programme, because of shared ownership projects and 


Supplied and fixed by 

HEYW00D GLAZING SYSTEMS 


central Government restrictions plans to build 750 houses on 
on finance, is gradually coming some 30 developments in the 


BRIGHOUSE, — WEST YORKS. 


to a halt, however. 

But there is no crisis. Private 
enterprise has risen to the 
challenge, and. with the suport 
of toe Development Corpora- 
tion, seems likely to fill the gap. 

I The city’s ability to demon- 
strate such flexibility and to I 
respond to tbe demands of a ! 
tree-market Conservative Gov- 1 
I eminent is in part an accident > 
of timing. The success of the. 
massive new shopping centre, 
opened in 1979, not only gave a 
focus to the city but boosted 
confidence that private funding 
would ensure continued expan- 
sion. 


current financial year. 


TURRIFF 


Turriff Construction Ltd. 


main contractors 


The aim has always been to 
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the manufacturing base estab- 
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British Railways (Midland Region) — 
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Over recent years the growth 
has been in white collar and 
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most of toe demand is likely 
to be for private housing.' 


TURRIFF CONSTRUCTION. LTD., BU D B ROO KE ROAD,. N 
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Financial Times Friday May 14 19S2 


THE MANAGEMENT PAGE 



19 


EDITED BY CHRISTOPHER LORENZ 


Why Texaco is in the throes of a revolution 


Paul Betts reports on the pressures which forced the US oil major to set a new course 


A CULTURAL revolution is 
taking place' at Texaco. An air 
of inform* liiy prevails aL Ute 
plush suburban White Plains. 
Now York, headquarters of a 
company traditionally portrayed 
as the roughest of a rough and 
rumble lot- of oil majors, 
intensely secretive and hard- 
nosed, run like a military 
academy with a penchant for 
penny pinching which has 
elevated it to the somewhat 
dubious rank of “ihe Lady 
Fru3.il of the Seven Sisters." 

Guards are no longer to ho 
seen at the sates to . the 
manicured lawns leading up to 
the white doughnut-shaped 
building which forms the heart 
and >cul of the imroveried 
world of Texaco. John 
McKinley, whu ?nok over as 


recently. 3 highly competitive 
price. 

Texaco was nnce Ute mo* 
profitable of the Sever. Sisters. 
I* braagod shat i: was the only 
turtipap.y to market :1s petrol 
in all liu- state*. of the union. 
It was not only an Aramc.i part* 
nor hut its own UjS. oil and 
lias reserves were at one time 
formidable. Its slogan in the 
l#50s was *■ number one- 
second to none." 

ft appeared to have hit upon 
a winning art. On the basic 
assumption that it.1 would 
remain cheap and plentiful {the 
second part of Unit assumption 
may, ip retrurpe-.!. :ta ionger 
seem as unreasonable a-s it Hid 
when the- vnory crisis exploded 
in tiie early J97(is>, it runrrn- 
I rated o.-i maximising its pus:- 


JOHN K McKINLEY : Spending record sumsto reverse Texaco's fall in reserves 



Total liquids parcant production rtplrad 




:974~30 

.t^oi- n 

Rolndge 'i[nr.|ii:a) 



Sort* tMHOI 


Estimated ut prond developed and uadevefoped rcMrvei 

M mtowjt '■••-i Bnmcmn ... 


CiudbCiland 

ikituijicu^imuda 


Natural sje 



WO 


trails of the Texaco executive 
— i on eh and lean with a certain 
autocratic attitude towards sub- 

iirdiiiatcs. 

Since McKinley took charge 
after steadily climbing the 
corporate ladder for more than 
40 years, he has unde sweeping 
changes in the way Texaco 
•-unduets and approaches its 
business. But as an executive 
of one of Texaco's main rivals 
pul it: "The question is 
whether ihc leopard has really 
changed its spots." Whet her i: 
has ur not, Texaco's rivals 
grudgingly arfcntiwlerii* 1 that 
McKinley is lina’iy steering the 
ciMupany, which had been losing 
ground lo its major competitor?, 
in the right d.riviion. However, 
he hod little choice. 

Drspi'f a vcmfrrtable profit 
of SJ.oi-.n mi revenues «r $59.3bn 
leu year, and as strong a trnart- 
c'.il p as any would wish. 

Texaco is only m;w beginning to 
p:ii; itself out cf a hole which 
save it ihc bigge.n scare of its 
life. Tin's a i j ume when its 
su-iallcd ** Aromco advantage " 
is increasingly becoming a major 
ilsari vantage, in the short term 
at least. This “ advantage " is 
its Jung and fruitful association 
with Saudi Arabia through the 
Arabian American Oil Company, 
giving it access to abundant 
supplies of crude at. until 


were rubbing their resources 
base !» lerop earnings bubbling 
up :n the snort run." 


Nightmare 


The rumbinariun of this 
strategy and events hevond the 
company's l-ontru! turned the 
lBTOs into a nightmare for 
Texaco. When the energy crisis 
broke and the Nixon Adminis. 
t ration imposed dumeslu- con- 
trols on ml. Texaco Has caught 
with lb back agate-'! the wall. 
It was more vulnerable than 
mosT because i; was spread so 
widely *n the downstream 
marketing business. Despite its 
enormous production, i*. cuiiSd 
only supply 86 per cent of its 
marketing needs and had to 
rely on outside pur.ha.res for 
the other 14 per tent. 

Dor.u-jtic price controls and 
regulations in the U.S. clobbered 
i: because it forced the com- 
pany to maintain uneconomical 
supply relationships in a 
number of American markets. 
Its domestic production of crude 
oil and natural gas liquids, 
running at orer 9UU.OOO barrels 
a day in 1970, lias been more 
than halved to 432.000 b/d last 
year. And .ill hough the tripling 
of oil prices towards the end of 
the decade coupled with the 
subsequent deregulation of 
domestic oil prices revalued the 


company's declining oil and gas 
assets. Unis propping up its 
overall financial position. Texaco 
fell behind its major rivals. 

To compound m a I ten. noi 
only were historic reserves 
declining and not being 
replaced but Texaco was forced 
repeatedly to revise downwards 
its substantial gas reserves in 
l.ouisiana ucd to a number of 
older, uneconomical supply con- 
tracts. If all these vuniractua! 
requirement have to be fulfilled 
over ihe next four years, the 
company says in its 19S1 annual 
report, it might have in buy 
$787 m worth of additional gas. 
Texaco has already reached a 
settlement lo be freed frum 
most of its gas obligations with 
regard to one of these contracts, 
and is discussing modifications 
in the other contracts to reduce 
its delivery requirements by at 
least 300bn cubic ft over the 
next four years. 

Texaco, in short, was in a 
mess . when McKinley took 
charge— all the more so because 
the company's rigid, autocratic 
management structure had been 
slow to react to the dramatic 
changes taking place in the oil 
business. According In oil 
industry analysts, it still has a 
long way lo go to catch up with 


Needed: 

an aeromagnetic 
survey for oil. 

The Government of the Philippines lets applied for loan from ihc 
World Bank (VBl for a Petroleum Exploration Project, the proceeds 
of which will be applied to eligible payments under the contract for 
which this advertisement is issued. Payment by the WB will be made 
only at the request of the Bureau of Energy Development (BED) and 
upon approval by World Bank in accordance with the terms and 
conditions of the Loan Agreement, and will be subject, in all 
respects, to the terms and conditions of the Agreement. Except as the 
Bank may specifically otherwise agree, no party than the BED will 
derive any rights from the Loan Agreement or have any claim to loan 
proceeds. 

The Bureau of Energy Development of the Ministry of Energy is 
pleased to announce a World Bank supported aeromagnetic survey 
program for eight areas in the Philippines by October 1982. The 
survey will cover a total of approximately 168.000 linear kilometers 
mostly over land areas and w ill require the following: 

1 . Doppler navigation or navigation system of comparable accuracy 
supplemented by photography; 

2. Magnetometer with a sensitivity of one or better; and, , 

3. Recording on digital magnetic tape and in analogue form. 

This invitation is open to all contractors and suppliers from WB 
member countries, Switzerland and Taiwan. 

All interested companies with a minimum experience of 200,000 
kms over the last 3 years arc invited to submit tender by May 10, 
1982. Tender documents will be available by May 15, 1982 and arc 
due for submission by June 39, 19S2. 

Address all tenders and/or inquiries to: 

Director 

Bureau of Energy Development 
Ministry of Energy 

Attention: Dr. A. SaIdivar-SaIi,Deputy Director 
PNTPC- Complex, Merritt RoacLFort Bonitacio, Metro Manila 
P.O. Box 1031 MCG* Makati, Metro Manila, Philippines 
Telex No. 22660 EDB PH 


sunii- of its main U.S. rivals. 
But there is a broad consensus 
that McKinley is now doing all 
the right tilings. 

By Texaco standards, what 
McKinley lias done in the last 
two years slops little short of 
revolution. He has already 
decentralised management. He 
says: ** Individual officers and 
heads of subsidiaries and divi- 
sions have the power lo spend 
money and the power to act and 
that is really the i-haract eriftic 
nf the new organisation we 
installed." In the past, manage- 
ment was so centralised that 
only the chairman, and perhaps 
one other senior oiticer. could 
clear the most trivial of spend- 
ing proposals. And the company 
was so secretive that only two 
ur three people had the 
auiiuirify to approve the most 
innocuous of public statements. 

But opening up the company 
and deeentraliMng management 
lo make it more efficient and 
flexible to respond to the 
market place are only part of 
McKinley's new plan. The key 
component of his strategy is, 
in his words. " to emphasise 
exploration and production pre- 
dominantly in the U.S. but also 
in other areas of the world 
winch are both politically safe 
and in which we feel there is a 
reasonable chance for good 
profitability." 

To make up for lost lime, 
McKinley has been spending 
record sums — for Texaco — To 
build up the company's U.S. 
acreage position and accelerate 
exploration in an effort to halt 
the decline in Texaco's historic 
U.S. reserves and eventually 
replace and increase them. The 
fact is that while the company 
has huge foreign production, 
last year totalling 2.76m b/d. the 
most promising end or the bu*«i- 
ness is expected to be in U.S. 


oil production now that aii 
domestic oil pnee controls have 
been lifted. Moreover, ihc com- 
pany's domestic production of 
432.imj 0 b/d last year fell welt 
short of Tex, sen's own L’.S. oil 
product demand of hou.ucuj b/d. 

At the- same time, by failing 
lo match its US. demand with 
its own domestic oil production, 
the company has been forced to 
rely heavily on us foreign 
sources. The bulk of this oil 
comes from Saudi Aral nr. which 
is currently fighting to maintain 
its S34 a barrel marker price 
of four or five dollars more than 
spot prices McKinley, who 
points out that Texaco has 
oilier important foreign produc- 
tion sources including, among 
others. Indonesia, acknowledges 
that the Saudi siiuaiion i.- put- 
ting pressure on earnings. And 
while many are now- questioning 
how long the oil companies can 
maintain such an expensive 
mistress at a time of declining 
demand. McKinley also suggests 
that there is an obvious advan- 
tage for a company to have 
access lo rhe largest known oil 
reserves iu the free world. 


Suspense 


McKinley acknowledges that 
Texaco in the past did nor 
commit as many funds in 
exploration and production ax 
it should have done. But he 
emphasises that Texaco will 
continue to invest heavily in 
new domestic cxploraliun and 
production at a time when 
many ocher oil companies are 
scaling down their capiial 
spending programmes in the 
face of declining profits and 
demand for oil products. 

“We are not cutting back," 
McKinley says. “We will he 
spending more money than last 


Management 

abstracts 

Can joint consultation become 
employee participation? S. P. 
Bate 4* A. J. Murphy in 
Journal of Management 
Studies (UK). Oct SI 
Explains how the role of 
joint consultation in industry 
lias expanded; examines con- 
sultative procedures, noting 
how they are viewed by manage- 
ment, shop-floor workers and 
shop stewards, and discusses 
their potential for develop- 
ment to increase employee 
participation. 

What managements Iry to hide. 
W. T. Thornhill in The 
Internal Auditor (USA). Oct 
81 

Points to the risk of manage- 
ments covering up current 
difficulties and/or past mistakes 
by shuffling around people, 
policies and procedures, and 
generally giving the impression 
of action: accepts that managers 
might act from the best of 
motives, but hints at the exist- 


ence of conspiracies which 
internal auditors can uncover. 

Technology transfer and 
applications. C. Beaumont 4- 
others in RiD Management 
(UK>, Oct 81 

Slates that transferring tech- 
nology between a developed 
and an undeveloped country 
involves political, commercial 
and operational agreements; 
shows by clear but anonymous 
case histories th3t conflicts of 
interest can arise in all three- 
areas; envisages an under- 
developed country requiring 
technology in three phases — 
products, then plants, then 
know-how; examines the after- 
effects of technology transfer, 
such as bottlenecks upstream 
and downstream of the project. 

These abstracts are condensed 
from the abstracting journals 
published by Anbar Management 
Publications. Licensed copies of 
the original articles may be 
obtained at CUSO each (includ- 
ing VAT and p and p; cash with 
order) from Anbar, PO Box 23, 
Wembley HA9 8DJ. 


MERGER OF NOVOTEL S.1.EJ4. AND 
JACQUES BOREL INTERNATIONAL 

The Boji-d of Directors of NOVOTEL S.I.E.H. Jnd the Boartfs of Director* 
ol JACQUES BOREL INTERNATIONAL have agreed uOon a scheme »r 
merging me two companies. 

The companies complement each other in ie«er«l *u>v 

1. Human r-sourtn ana management. 

2. lni..'i national development. 

3. Widening Of thr range of quality service* in catering and hotels 
iSonicl. Novolel; Ibis. M record. 

a. Creation or a broad Indutcrlal base to compete efficiently maria-wide. 

The agreement to merger »u signed try each company It wilt be put 
before tho shareholder* at meetings to be held on Monaar Jung ZS. 1982. 
It provide* for. 

— The absorption Of NOVOTEL S.I.E.H. by JACQUES BOREL INTERNATIONAL 
elfeetfre January 1. 1982. 

— The exchange ratio to be proposed — 23 JACOUES BOREL INTERNATIONAL 
shares ror 3 NOVOTEL S.I.E H. share*— is based an evaluation* made 
bv tho two companies' appraisers. 

The name of the new group Is under study. It will Incorporate NOVOTEL.'* 
Tne group, with 35.000 emolovees and sales (orceest o' f.f. 6 billion in 
19B2. would be headed bv Messrs Paul Dubrulc and Gerard Pcliiion. 

The result, expected m mil Brat year of operaita.-i would oernwt a 
distribution of dividends lor 1982. 



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TAKE ADVICE FROM 

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Telephone: (0732)358323 



f/fa-.on Sees*' 


year; last year was, I guess, she 
biggest year in the histnry of 
Texaco for exploration.” i Texaco 
spent .92.2bn on finding and 
producing oil and gas.) 

Once notorious for its ” so it 
alone ” policies, Texaco has 
embarked on a novel approach 
to joint explore :inn ven sures 
with smaller independent US. 
oil companies. Quietly, at a 
ume when public attention has 
been centred on the drama and 
suspense of big corporate 
mergers in the U.S. energy 
industry. Texaco has been 
putting together a whole string 
of limited ur partiai mergers to 
nain access to the U.S. acreage 
oF independents. It has already 
signed nine such deals giving 
it access to 3.5ru acres. 

McKinley says he is lookin'* 
for more partnerships with 
independents which he sees as 
"a very effective way of bring- 
ing about an increase in high 
quality exploration.’* 

McKinley believes there are 
many opportunities because of 
the cash squeeze on all com- 
panies. Texaco, on the other 
hand, is rich in terms of cash. 
It held S2.S4bn in cash at the 
end of tiie year — more than its 
$21 bn in long term debt. “We 
have been able to fund these 
much increased programmes 
without resorting to long lerm 
borrowing.” McKinley says, 
“but we obviously expect to 
invest at levels which will use 
all excess cash and use the debt 
capacity of the company " 

This suggests that Texaco is 


looking for the bis deal- 
McKinley claims he prefers to 
explore for oil and gas. How- 
ever, he admits “ (his does not 
mean you close your eyes to the 
ability to purchase reserves if 
you can do so at a lower cost.” 
indeed, many in the industry' 
believe that Texaco and Gulf 
(the smallest of the Seven 
Sisters) are in much greater 
need of a large acquisition than 
Mobil, which has repeatedly 
failed to pull off a major U.S. 

oil acquisition. As one oilman 
put it: “Texaco and Gulf have 
to act out or necessity-. Mobil 
has been acting more out of 
opportunity." 

Texaco did put in a bid for 
Conoco, the ninth largest U.S. 
oil company at ihe centre or a 
megadollar takeover battle last 
summer which was finally won 
by Du Pool ** We had discus - 
sions at their request.” 
McKinley said. " We made 
i hem a proposal to buy ine 
whole thing for SS5 a share in 
cash for any, and all shares.” 
Although Conoco turned Texaco 
down. McKinley claims his 
offer, involving a total of about 
$7.3bn in cash was still the best 
and worth ihe most money to 
Conoco. Du Ponl ended up 
paying S&Sbn in cash and 
f-pcuriiies. 

Hostile 

The fact that Mobil was 
finally blocked by (he courts on 
anti-trust grounds in its recent 
billion dollar attempt to buy 
another oil company does not 
appear to worry McKinley 
unduly. “ I believe the so- 
called hostile merger of a 
middle sized or large oil com- 
pany by another large oil com- 
pany is not very probable. It 
is my view that so-called 
friendly mergers certainly could 
comply with anti-trust laws... 
and that they would be reason- 
ably acceptable to the general 
public.” 

McKinley's strategy, however, 
is not confined to exploration 
and production, or for that 
matter, the acquisition of badly 
needed U.S. oil and ga's 
reserves. Although Texaco’s old 
emphasis on marketing has 
been watered down, he says the 
company will stay in the 
marketing and refining sector 
of the business but would with- 
draw- from those areas “ that do 
not appear to have a good long 
term future or profitability." In 
this respect, Texaco has closed 
three U.S. refineries, is con- 
sidering closing its refinery in 


Frankfurt, and has already 
sold the interest it had in an 
Irish refinery to the Government 
of Ireland. It has been dramatic- 
ally cutting back on its petrol 
retailing network in ihe US. 
and no longer sells in every 
state. As evidence of its swifter 
response to the market place, 
it was the first U.S. oil company 
Jast winter to tackle the prob- 
lem of petrol credit card sales 
in the U.S. by imposing a 3 per 
cent fee on such sales td 
retailers. Elsewhere, the com- 
pany has also been reducing its 
large fleet of tankers. 

In the past. Texaco has been 
criticised for failing to diver- 
sify. But retrospect. Texaco's 
lack of initiative in diversifying 
in contrast to some of its rivals 
has proved fortuitous. McKinley 
says the company will diversify 
and expand both internally and 
by acquisition. “ But we do not 
necessarily see that a copper 
company, for example, has a 
particularly great future... we 
are not enamoured with coal as 
some others are. Thai doesn't 
mean we won't acquire a coal 
company ... but I think when 
you look at the situation, with 
unlimited reserves of coal, any- 
one with money can buy. One 
can open a mine. The chances 
of profitability in that scenario 
are probably satisfactory but not 
outstanding'. And so we have 
felt no great urgency to enter 
the coal business.” 

McKinley says that diversifi- 
cation outside the energy in- 
dustry is also included in his 
strategy. “ Only a few months 
3go,” he adds. “ some know- 
ledgeable analysts were saying 
1 oh yes. we are coming to the 
end of rhe oil era . . . the com- 
panies should move rapidly to 
diversify into non-energy areas 
and into energy areas other 
than oil.’ I think one of the 
interesting changes in recent 
months is the perception that 
oil in a world of market clear- 
ing prices w-ill be the principal 
source of energy for many years 
to come . . . and there is no eco- 
nomically viable substitute for 
petroleum as a transport fuel 
and an easily transportable 
fuel." 

Thus Texaco — and McKinley 
—sees the oil business, in spite 
of the current downturn, as “ an 
excellent business for manv 
years to come." And for this 
reason, he sees ** excellent 
opportunities for investment of 
major amounts of funds in the 
industries we know the most 
about: exploration and produc- 
tion." 


BASF ’81 


We are convening our 

30TH ANNUAL 
GENERAL MEETING 
OF STOCKHOLDERS 

on Thursday, dune 24, 1982, 10:00 a. m. 

at the BASF Felerabendhaus, LeuschneretraBe 47 

Ludwigshafen/Rhine, West Germany 


Agenda 

1. Presentation of the 1981 Financial Statements 

of BASF Aktiengesellschaft and BASFAKIIengesell- 
schaft and its Consolidated German Subsidiaries; 
Presentation of the 1981 Annual Reports of BASF 
Aktiengesellschaft and BASFAktiengesellschaft 
and its Consolidated German Subsidiaries; 
Presentation of the Supervisory Board Report 

2. Declaration of dividend . 

3. Ratification of the actions of the Supervisory Board 

4. Ratification of the actions of the Board of Executive 
Directors 

5. Authorized capital 

6. Appointment of auditors for the fiscal year 1982. 

Shareholders entitled to participate in the Annual 
Meeting and to exercise their right to vote are those 
who have deposited their shares during normal office 
hours and in the prescribed form at a depository 
bank. The shares should remain deposited until the 
conclusion of the Annua! Meeting. Shareholders 
have the right lo vote by proxy. Depository banks 
are those specified in the "Bundesanzeiger" of the 
German Federal Republic Nr. 90 of May 14, 1982. 

Depository banks in the U. K. are: 

Kieinwort, Benson Limited 
S.G. Warburg & Co. Ltd. 

The deposit is only effective if the shares are sub- 
mitted by Wednesday, June 16, 1982. 

Ludwigshafen/Rhine, May 14, 1982 • 

The Board of Executive Directors 

BASF Aktiengesellschaft 
D-6700 Ludwigshafen 


BASF 







Financial Times Friday May 14 1982 


THE PROPERTY MARKET by a»dr« TAYLOR 


London tenants look 


VAUXHALL CROSS— AN ARCHITECTURAL AND COMMERCIAL APPRAISAL 


man 


further afield 


An attempt to break the routine mould . . . for usm 


THE STEADY drift of commer- 
cial and industrial companies 
moving out of central London 
seems likely to continue. An 
increasing number of com- 
panies, unhappy about rising 
office costs in London, have 
recently been making inquiries 
about cheaper accommodation 
! currently on offer outside the 
: capital. ' 

Reader's- Digest and Wellcome 
; Foundation are among several 
names- reported by agents to 
have been looking at large 
office buildings outside of cen- 
tral London. Reader's Digest, 
the publishing concern, is 
currently boused in three 
buildings in the City and The 
West End. Wellcome Founda- 
tion. line pharmaceutical group, 
has its headquarters in Euston 
Road. 

Enquiries made so far appear 
to have been largely cf an 
exploratory nature and neither 
company has reached any firm 
conclusion ahoirt a move. But 
both Reader's Digest and 

Wellcome Foundation are 

clearly, concerned about the 
impact nf rising costs, particu- 
larly local authority rate 

increases, in London. Reader's 
Digest, which is advised by 
Edw-wcd Erdraan. has already 
decided to relocate at least part 
of its City staff to its offices 
in Swindon. Wilts, 

Bank of America is also still 
in the maTket for a large office 
building— despite its recent 
decision to lake space in 
Croydon. Surrey. The bank, 
through its agents St Quintin. 


’ has been looking at a number 
' of locations, particularly to the 
l west of London. 

/; it seems likely that the bank 
intends to retain its head- 
-i? quarters in London’s Cannon 
•‘ Street hut is seeking space for 
?• other operations presently 
'j housed in a number of London 
£ office buildings. 

3 Rises in rents, rates and scr- 
C vice charges have persuaded 
companies to re-examine their 
requirements for large central 
^ London offices. Fluor, the U-S. 
V construction group, is another 
v company which has recently 
:j ; been looking' at major office 
buildings outside London. A 
i ' preference for areas to the 
{■i north of London has been ex- 
r pressed, according to some 
I, agents. 

£ Estate agents Strutt and 
Parker have recently conducted 
mini-survey, comparing the 
£ cost of office rents, rates and 
i'- service charges in central Lon- 
:,don with those in some pro- 
,1 v. 1 nrial locations. 


£ Strutt and Parker, not sur- 
: 'pri singly, are strong supporters 
L of Basingstoke, adjacent to the 
V- so-called "Heathrow Triangle" 
• - area and where the agents are 
seeking tenants for the 157,000 
sq ft Gateway House currently 
: occupied by papermakers 
i Wiggins Teaoe. Roger Dean of 
•Strutt and Parker says that 
rents, rates and service charges 
on Gateway House amount to 
110.75 a square fool compared 
with around £40 a square foot 
in the City of London. 


THE DECISION to hold a 
design competition for the 12 
acres of land by the Thames at 
Vauxhall Cross was an indepen- 
dent attempt by Mr Michael . 
Heseltine, the Environment 
Secretary, to break the mould 
of routine architectural solu- 
tions to the problems of com- 
mercial development in London. 

To encourage the developers 
of this important site, at the 
southern end of Vauxhall 
Bridge, to improve the stan- 
dards of commercial architec- 
ture Mr Heseltine added the 
lure, of a speedy by-pass around 
the planning procedures in the 
form of a Special Development 
Order to be granted by Parlia- 
ment. This Order is likely to 
be approved -following the 
Minister's own commendation of 
the winning design, before the 
end of the present session of 
Parliament 

In the record time of only 
six months a winner has been 
selected from a total entry of 
128 schemes, Mr Ronald Lyon, 
who heads Aru abridge, the 
project managers for the 
scheme, making the final choice 
from a short list of three pro- 
posals. The winning scheme is 
by architects Se-bire AJlsopp 
working with Mr Ted Happold, 
the consulting engineer. 

It is dear why the assessors 
and the developer liked this 
scheme by a relatively unknown 
firm. It has the virtue of being 
a simple and straightforward 
answer to the competition brief. 
It is based on the creation of 
a zig-zag wall of office buildings 


LONDON W.1 


i ■ 

V ' i 

\ ■■ 


149 TOTTENHAM COURT RD. 

(NEAR EUSTON ROAD) 


AIR-CONDmONED 

OFFICE FLOOR 


15,650 SQ.FT. 


* 4 PASSENGER LIFTS 


* 12 CAR PARKING SPACES 


* PRESTIGE ENTRANCE HALL 


LEASE FOR SALE 



Sole Agents 


Jrlilllex* Parker 


May & Rowdon 




77 Grosvenor Street, London W1 A 2BT 
* Telephone: 01-629 7666 

also City of London, Edinburgh and overseas. 


PICCADILLY CIRCUS W.1. 


ENTIRE UPPER PART 


3900 sq. ft. 

Existing User Rights for Restaurant but Entertainment or Office Use 
possible, subject to P.P. 

Advertising Income: £50,000 p.a, 

26-Year Lease — £350 pa. 

I no review) 


FOR SALE 


Enquiries 10 Sola Agents: 


Ref: JPG 

E. Hugh Henry & Co. 

Chartered Surveyors 

55 Clapham High Street. London SW4 7TG. Tel.: 01-720 120B 


CENTRAL BIRMINGHAM 


Brand new seif-conto/ned 


FACTORY OR WAREHOUSE UNIT 


OF SOME 10,800 sq. ft. 


together with secure yard area 
of 1,500 sq.'yds. 

\ Offices and all services provided 

Offers for purchase considered 

‘ SHIPWAY DOBLE & EARLE 

93/95 Hagley Road, Birmingham 16 
021 454 8111 


FOR SALE BY PRIVATE TREATY 
THE ISSUED SHARE CAPITAL OF 


F. E. W .(Farms) LTD. 


Tewkesbury 9 mi las - Cheltenham 9 miles - Evasham 9 miles 
M5 Moloiway (Junction 91 B milms 
ASSETS INCLUDE: 

HOME FARM. TODDINGTON 
Cheltenham, Gloucestershire 

Princlole Residence wuh 6 Cottages entansive FarmbuUdings 
584 Acres of Lend 

The entire Pedigree Zanford Herd of British Fnaaian Cattle 
approximate!* 440 head 

Fixtures sod fittings. Tractors. Vah-cles. Agricultural Machinwv and 
equipment, produce, stores and growing crops 

Particulars from: 

Bruton Knowles and Company. 55 Barton Street. Gloucester 
Tel: (0452) 21267 Hat: RAL/RMA or from: 

The Solicitors: Mnsara. Boyce. Hatton & Co., 12 Tor 'Hill. 
Castle Circus, Torquay TQZ 5R8 - Tel: (0803) Z5343 


LONDON E8 

MAIN ROAD 

SUBSTANTIAL 

INVESTMENT 


Let to good covenants 
producing £90,000 p.a. f.r.i. Ise. 


F/H £575,000 

for immediate sa/e 

DOUGLAS ALLEN 

(Surveyors) 

518 0017 


Prestige 

Office 


1,500 sq. ft. 


adjoining Highbury Corner 
Magistrates Court 


New 20 year lease 


Rent £10,500 
Per Annum Exclusive 
SALTER REX 
01-267 2071 


BATH 

MAIN ROAO GARAGE 
BUSINESS FOR SALE 
At Going Concern 
Total Area 14-622 sq ft 
0.75 Acre Site 
Offers invited for the entire 
Share Capital 

- Full details available from tha 
Joint Sole Agents- 
J- P. STURGE & SONS 

Chartered Surveyors 

Z Wood Street. Queen Square. 
Betti BA1 2JG 
tel: (Q22S) 318300 
CRISP COWLEY COMMERCIAL 
Chartered Surveyors 
Ralph Allen's Town House and 
York Street Chambers, Bath BA1 NQ 
Tel: (0Z2S) B2B21/S 


facing the river like a series 
of open books. Stepped wedges 
of residential accommodation 
lead down from the offices to 
the river. Between the offices 
and the fiats a glazed public 
route runs the entire length of 
the site. 

The involvement of Mr Hap- 
pold has given the scheme a 
structure which has echoes of 
his work for Arup engineers, 
particularly the Pompidou 
Centre in Paris. There are con- 
siderable areas . of external 
bracing including an elegant 


suspended footway crossing over 
Vauxhall Bridge. 

In its architectural imagery 
the winning scheme is frankly 
disappointing. While it has the 
virtue of a brilliantly simple and 
effective plan it lacks any of 
the visual excitement and - his- 
torical references of the scheme 
most favoured, by the public, the 
short listed design by London 
architect Mr Terry Farrell. He 
opted to break up the 1.5m sq 
ft of office space in the brief 
into a series of more than 25 
pavilions graded in size as they 


climbed away from the river. 

The other short listed scheme 
by Nicholas Lacey Associates, 
while being unduly camples, 
managed to bring water and 
distinctively curved buildings 
onto the site. Lacey also 
achieved something that is 
badly lacking in the winning 
scheme, a series of buildings 
which actually overhang the 
water’s edge. 

The three assessors for this 
competition. Sir Hubert Bennett 
and Mr Richard MacCormac 
(both architects) and Mr Vic 


Heniy of Arunbridge, in their 

selection of a short list success- 
fully isolated the most thought- 
ful solutions to a ruthlessly high 
density brief. Has the competi- 
tion achieved its objective of 
changing.. the sterile face of 
commercial architecture? Alas, 
the answer must be. only a 
qualified yes. . The winning 
scheme is safe before it is excit-. 
ing and will do little to change’ 
the image of the modem office 
block as a Tent collecting slab. 

COUN AMERY 
Architectural Correspo n dent 


candidate 


. . . and satisfy commercial considerations 


THE ULTIMATE test of any 
large scale office development 
comes in the harsh reality of 
the commercial climate. Suc- 
cess as far as the developer is 
concerned is measured by the 
speed and quality of lettings and 
sales. 


The winning design chosen 
by Arunbridge, project man- 
agers for- the controversial 
Vauxhall Cross project, attempts 
lo marry the sometimes conflict- 
ing aims of producing a scheme 
which is visually attractive and 
is capable of being funded, built 
and eventually occupied. 

One of the designs most 
favoured by the public for 
example, would have involved 
office blocks facing inwards at 
each other; not the easiest of 
concepts to sell to a prospective 
tenant. 


One of the most important 
elements as far as the de- 
velopers are concerned is that 
the scheme, which calls for the 
erectiou of more than 1m square 
Feet gross of offices In six major 
buildings, can be built in phases. 
Speed of development will de- 
pend upon the successful letting 
of each phase. 

The ability to phase the 
scheme will assist funding. The 
Kuwaiti-led consortium which 
is backing the project is a pro- 
perty trader rather than a long 
term investor. It does not intend 
to retain the development and 
will be seeking -finance as each 
stage progresses. 

Edward Erdman. consultant 
surveyors for the scheme, are 
already examining various ways 
of financing what is a vast pro- 
ject Preliminary approaches to 
the consortium are understood 


to have been made by several 
British and Continental invest- 
ment institutions. Also, two 
energy and resorces based com- 
panies have expressed an 
interest in purchasing freehold 
office headquarters. 

Initially, the consortium may 
consider financing the first 
150,000 sq ft of offices itself, 
using short and medium term 
bank finance. The developers 
are conscious of the need to get 
something out of the ground 
relatively quickly, if the scheme 
is to create the hoped-for im- 
pression in a part of London 
previously unfashionable as a 
strategic office area. 

The politicians will also have 
to make up their minds fairly 
swiftly about whether they like 
the plans. An option to acquire 
a key element of the 12 acre 
Vauxhall Cross site from Euro- 


pean Ferries for around £2. 5m 
runs out in July. Moves to grant 
the project a Special. Develop- 
ment Order will almost certainly 
result in a. Parliamentary debate 
given the vociferous opposition 
by some local groups to- any 
large-scale office development on 
the south bank: - 


Developers ■ pursuing major 
schemes like Vauxhall Cross, 
Hay's Wharf and Coin Street 
along the ISouth Bank must at 
times feel like a Grand. National 
jockey*- once safely over 
Becher’s Brook there is still 
Canal Turn and The Chair to 
clear. The biggest fence; and 
one yet unmeasured, is whether 
there will he sufficient tenant 
demand to fill all .the space now 
planned. 


ANDREW TAYLOR 


A Development hyJfrBrixton Estate pk: 



314 Regents Park Rd. 

FINCHLEY N3 



TO LET 

18,920 sq.ft, offices including parking for 49 cars 


Amenities 


| An attractive and spacious entrance hall fl Full carpeting throughout 
Suspended acoustic tiled ceilings with light fittings £ Gas fired central heating 

| An eight person fully automatic passenger lift | Superb natural light 
H Ample male and female toilet accommodation throughout 


© 


Joint Letting Agents 


dive lewis *"« t 

-I i MfcVFAlK LCNCX>1 W1X SFD 

& partners 01 499 1001 


QB 


MICHAEL BERMAN A CO 

358 Regents Parlt Road ! 
Finchley London N3 2LJ J 

Tel 01-349 9211 f 




HARLOW, ESSEX 

Modern Single Storey 

FACTORY/WAREHOUSE 

With Prestige Offices 
250,000 SQ. FT. (Can be divided) 

FOR SALE/TO LET 


Apply Sole Agents : 


> ► 

4JJ 


BOTCHER 

LEOPOLD FARMER 


Browntow House. 50/Sl HtghHolbom. 
London WCyU6EG 




mm 

mmsm 


Joint sole agents 


Lawrence Essex 

Telephone: 01-486 4307 


01-236 3000 


ADJACENT M25 

BR Station&Mg'or Shoppy Centre 

It 1 


COLNBRCOK, 

HEATHROW 

Poyle Industrial Estate 


EXCELLENT MODERN 
OFFICE BUILDING 55,000 Sq.Ft. 

\feryEc 3 onomicalat£ 830 per sq.ft inclusive 
of Ratesuand Running Costs 

TO LET 


Excellently located, freehold industrial premises 
30,182 sq ft 

only 300 yards from M25 (completion 
Spring 1983), lHs mfles Heathrow Airport 
(35 minutes travelling time to Manchester 
and the NW industrial regon). 2 miles from M4. 
modem angle storey factory 21,605 sq ft 
% two storey offices 5, 162 sq ft to frontage. 

FOR SALE. 

OFFERS IN EXCESS OF £975.000, 
SUBJECT TO CONTRACT 


THOMSON, RODDICK 
& LAURIE 


m 



MR' JOHN- Laurence, who as 
non-executive chairman of 
Estates • dr . General recently 
became involved in the . 
abortive attempt to marry E&G ' 
to Federated -Land, -Is. mow- to 
be in at the birth of another 
property company- joining, the : 
Unlisted Securities Market . - • 
Mr. Laurence, 68. and senior^ . 
-partner of chartered, account, 
tarns Hays Allan, . has been' 
appointed chairman of ,Deti-, 
"coreu .the East Anglian.-', 
industrial development company • . 
which later this month win seek 
a placing on the USM. Brokers 
to the issue, expected is raise 
around £Lm, are PhSIiIips and 
Drew. . 

Dencora, with ‘property' :in- 
vestments estimated at around 
£16m, was- started 12 years ago 
by Mr Richard Youngs, now. 46,- 
and Mr CoKn Holmes, 49r The 
company, which also carries out 
a small amount of household- - 
ing, has built a sound reputa- 
tion as a no-nonsense builder 
of industrial properties, ‘‘ . 

■ Mr Laurence, who is.entiiusir 4 
astic enough ' about the com- , 
pany’s prospects to take a small 
stake in Dencora himself., says 
that the company’s management 
approach will' not ‘alter. “We 
shall stick lo the typq of devel- 
opment: and. the area ~we . know ; 
best. East Anglia.’.' _ ‘ 
Dencora .also includes iron- 
mongers and . .builders* mer- 
chants interests but the main; 
thrust of the company's -expan- 
sion will continue to come from 
industrialdevelopments. .... 


y/> 

r/K 

r / -jr 
(/> 


r — "i- 




a 


h'it ■ ■ 




P3F’V 


20 Murray Street, Annan 
Tel: 04612 2575 

larestaent & Freehold 
Farms For Sale 
in Scotland & Cumbria 

We olso . offer o 
Comprehensive Agricultural 
Management and 
Consultancy Service 



FOR BROCHURE, PHONE 01-493 6787 
10 Carios Place, Grosvenor Square; London WlY 6HA 


^ Edvard R oshtm 

^ — 5oft&KerMT\i 


Hammersmith 

Excellent Headquarters 

OFFICE BUILDING TO LET 
6,100 Sq ft approx 


• Excellent Corporate Representation * Car lurking available 
* Fully Fitted la a High Standard 


FULLER 

PEISER 


I'hartcrt-d SurvtvOrs 


18 Bolton Street 
Mayfair 

London WlY 7PA 


01-4998931 


HsM0n«|3*gnf£] 



j HOUNSLOW, Middx 

Prestige 

High Technology 

j INDUSTRIAL PREMISES 
11,560 sq. ft. 

"Hj' 99 year: leasehold interest 

IPWARDSYMMONS 


BREATHTAKING 


BARBICAN 


Now complete - 
Tpwcr Flats 

TO RENT. UNFURNISHED 
£4300 to £24.000 p-a. 
Company applications welcome 
Ring' 

01-628 4372 or 01-588 SI 14 




56/62 Wilton Road, London SW1 V 1 DH 


BOLTON 


9 ACRE INDUSTRIAL . 

■ STATE - 

3:- Mills,- 3-acr*. field, with P.P 
.... . Income. £60,000 .. 

. (potential £13DJKX>) 

R- U MASON.. 

43 HAffTJNCTON ROAD, BOLTON 


i-Sa 

















Ift&NH i ^ 


Remaning new air-ccrdilkx^ed offices 
6,600sq.ff up to 28.300sq.ft 

Irnmedate occtpotion SubstantaJ spedfiedto err i finishes 
Joint fcrtbng ogenfs 

Edward Ifuw Scott Jones Lang 
Erdmon & Partners 

t- TV™ i J? rp'k 1 Ojf. “ “ 


„ r s ( H, 

™ W:<H-629 6291 

TeUOl-629 5191 


lC"KK;wn 

-fet 01-493 6040 


Theatre £r Complex 

The Old Vic 

London ‘;SEl#rv:/ ( 

FREEHOLD 
For Sale by Tender 

Closing date 
Noonllth June1982 


Gooch -F“ 
VUagstaff 

■ ChirdsrWSBrvrc^* 

01-248 2044 


73 VVatling Street 
• i-ondon EC4M 9BL 
; .Telex SS11824 

■Arnstt-iwm ■ narfcfuri Denver 


a« ’■sg gr 

t2B iBQSSSn 


j3 


Period office building 
with car parking to let 

Economical rent. 
14,585 sq.ft. 


Regent’s Park, London N.w-1. 

Edward see,** . 

tondi *n WIN CAP • 
EeQI I Hfll 1 Telephone: 014*29 8191 



flDE GRODT | 

1 : y y /•■J - r ] 



NAPIER HOUSE 

; HIGH HOtBORN WO 

6,330sq.ft. 

High Qualiiu Air Conditioned 
Of fices in New Deveiopmertf 

TOIET 


Hew tease ftraflcbte 


: " v >p & 

* * 


iW* 


J3Q9-31Q HIGH HOiBORN Q-t .031 765! 
LONDON WC1V7LX W * • - - 


SLOUGH 

Prestige Bath Road position 

TO LET 

about 9,500 sq. ft. of modern light industrial /office 
space suitable for electronics research or develop- 
ment. . , . 

Immediate possession 

Detail.*: /rum: 




Giddy & Giddy 


44a His& Slrtet. Slough. Tel: D731N76W5 


BEDFORD 

PRIME INDUSTRIAL. ESTATE 

■ INDUSTRY * 'WAREHOUSING' 

EXCELLENT ACCESS Ml. Al. & EAST COAST 
GROUND LEASE OR FREEHOLD NOW AVAILABLE 

■*» "*"■ *“ ■ 


SUBSTANTIAL MIXED USER BUILDING 

Located within IS miles of Condon 

Total area approx. 45,000 sq. ft. 

Office content 163®* «j. ft . 

Good access to mam road - Ample car. parking 
- - Available aL reoconablu renidi 

Apply Box T5BB3.FutoncMrjmes 
10 Cannon Sfroef, London ECA P A8r r - 





SHOPS 
AND OFFICES 


LONDON 

15.000 SQUARE FEET 
OFFICE DEVELOPMENT 
Designs'] and built m your own 
apaciiicitiai:. Pm.im minis or 
, ouirmhi (tala 

Epplno feral Suburban Location 
20 imnuto: rad lint CITY ■ 

’« m:.'o MU access IM2S in jSftJJ 
R- L- Nash Fries 

114 Gouge Lon*. South Woodford 
London Elfl. 01.989 7725 


EX-MONEY BROKERS GOOD 
QUALITY OFFICES AVAILABLE 
SCRUTTON STREET E.C.2 
4.000 sq. ft. 

21 GPO avchango linos counseled 
Low outgoings, 16 p.p.f, 

MCW LiACE 
01 *498 4702 


HiTCHIN. .HERTS.— —Modern w«g|w flltt 
*eor o»in lent tor uk, Two tuiln 

ol V 2 B 0 IQ ft .nd l.hMQ SO II. a«*.l- 

able n a whole or ■naindu.iliv. Normil 
premium r«u.r« Drbnl, • CftanscOars 
A CO- Tel (94ii2| 44ki. 

OULMSFOHD — PreilQr irU-nmulWCl 
omte buiKtinc. 5X00 w. f!.. fawn c antr# 

f&Vhf? ST 5&n au enflu, '*‘ 01 ' 


LAND FOR SALE 


. CCRRARDS CROSS — Builci qg plot for sate 
( wtcfc det a i led oUnmng lor liatur* hun- 
7 7J79 *' 4i W>3 PHOa< RKUrtaii-arUi 


West Bromwich 


i am sale 

Prime Freehold 
Industrial and 
Office Complex 

withredariop m e n t po ten ti al 

Ideally placed at the centre of the Nilcral Mctor*ay rieh«wl<_ 

* Junction 1 0,15) -Three tenths of * Ample expansion land 

3 rode. * Ideal opportunity for newindciral 

^Uodancemoutercenfreaidoffices esutesutyecr to p&friflgssmMaL 
- 13,221 satt *Sit£3fea- 7.66 acres. 

* 64,000 Sqjt. edding factory and to Bgmngterr. BaadcaS fc 


JohcSdeSefins Agents 





STRAND Ohi 
THE GREEN 

CHISWICK W.4. 

Superb Riverside Offices 
approx 6,000 sq.ft. TO LET 

Recently refuitis^ 

Cwnpietely sdfcontoirKd 
Substantial feriung 



Herring 

bon t v l)aw 


Chartered Surveyors 
Sackvillc Street 
I/judnn WLK HQL 
01-734 8155 


FINCHLEY 

6400 sq ft 

prestige office block 
TO LET 

Imposing entrance; private 
parking. Central heating, 
fully carpeted . 

freehold available 




Telephone: 01-349 0515 

365a Regents Park Road 
Finchley Central, N3 


City of Honiion 

EC3 

9,000sq.ft. 

self-contained office building refurbished 
to a high standard close to 
TheBatticand Lloyds 

TO LET 

Available now 


Edward 23 College Hill, Cannon Street, 

London EC4R CRT 
Tel: 01-236 3611 


HAMPDEN HOUSE 

NR. GREAT MJSSENDEN, BUCKS 

A’ magnificent period building standing in extensive grounds amid 
.the Chikems area of outstanding natural beauty. Suitable for a wide 
variety of uses. Offices, Institutional. Leisure, Research. Education. 
( Subject to accessory consents) 

BUILDING AREA APPROX. 18.000 SQ. FT. NET 
All enquiries to Sole Agents: 

RAFFERTY BUCK. LAND 

30 High Street, High Wycombe, Bucks. Tel: 0494 21234 


UBA INVESTMENT 


★2 YEAR RENTAL 
GUARANTEE 


£SsL SS3V 

★SINGLE LOT = 
£310,000 
★COMPLETION 
MAY 1982 
★CITY CENTRE 
POSITION 

RERPCH 


16 SUFFOLK STREET, 
LONDON SW1Y 4HO 
TeL 01-930-97 31 


Luxury Executive Apartments (front only £39,500) 

mthe heart of Croydon aporox. roM-waybeJj»e n ttj« iCttyCISmins. by train) 
and Galwlck aeport and only mins. JromtheMM ■ 

Shannon Court tea luxury, new development rf 12 w 



under offer. Contact th e develo pers dir** n<wc- 

addley homes limited 

To rrtdfl b Road, Th 0 mw n Hwiti.SunBy CH47EZT>1ephoa». 01484 901B 


EASTBOURNE 

Sussex 

SUPERB MODERN FACTORY 
50,000 SQ. FT. 

Subdivision possible 
FULLY FITTED & READY FOR 
IMMEDIATE OCCUPATION 

!.: EiccLvri OHiees 3.000 sq. It. 

2 Lamb 5it« 2 36 Acres 
U Him him. Lighting & StoR rjcrl.res 
■i Geos Yard & E>iemai Storage 

FOR SALE 


Stiles Horton Ledger 




42,000 sqft 


New Air-conditioned 
Office Development in 
the City of London 


Jones Lang SINCLAIR GOLDSMITH 


Tel: (0323) 36244 


ioXoXSIM 

Chartered Surveyors 
fctoor^l e 4_o#*drvi £C2H 7JL 01-6386040 



HOW TO MAKE 
A SQUARE FOOT 
GO ONE STEP 
FURTHER. 

If you’re looking tor factory, office or warehouse 
units in London, no doubt you’ve looked ate >ot of prices. 

That’s why v.-e know you’ll be more than 
interested in the Bmatone Baza in Wembley. 

Compared to similar developments in the area, 
were up to £U5 per square foot cheaper, vmich could 
mean a potential saving of up to 40' i on your annual 
rental. 

The Binatone Plaza, a modern office building with 
7 light industrial-warehouse units, also has all the right 
connections. 

There's not only direct access to the North Circular 
Road, but also unrivalled access to the major motorways. 

So for all the details, contact our Sole Agents. 
Smith MelzacK at the address below and you'll find out 
howto get more square feet for your money. 

TI-HE I3NATCNIE H.AZA 


• u- .’. 0BB2AEX ib G';nd Pjrad-: Forty A.-enuiiVemd?..: 
MIDDLESEX HA9 9JS. Teieohoiie. W-908 4c3;t 7*e» • 


Cooke & Arkwright 


CITY OF CARDIFF 

RESIDENTIAL BUILDING LAND 
FAIRWATER ROAD, LLANDAFF 

An impressive Victorian house with potential for 
adaptation if required and landscaped grounds of 
approximately 

FREEHOLD 3.83 ACRES 

TO BE SOLD BY PUBLIC TENDER 

CLOSING DATE: 

12 noon Wednesday 30th June 19S2 
7/S Windsor Place. Cardiff CF1 3 SX 
Tel: I022JJ 39S151 Telex: 4976SS 


9,10 Fcnchucch^ ^Stieer^ Ijbiiddri 

01-&23 66447?i ; jSw ’ 

Wht 


□E GROOT 
COLLIS 




EC2 

A Superbly Modernised 
Self Contained Office 
Building in the * 
City of London ^ 



ALL AMENITIES;;-^ 

• .-i‘. -r. - 


BASILDON HOUSE 
7/11 MOOftSATt EC2R'6AD 


w 


01 606 1455; 


ilrli 


INDUSTRIAL COMPLEX 

ON 2.10 ACRES 
FREEHOLD FOR DISPOSAL 

with virtual vacant possession 
BY WAY OF COMPANY SALE 
Of interest to Owner Occupiers. Developers and Investors 

PROFFITT AND GOUGH 

37 St. Albans Road, Watford, Herts 

TEL: WATFORD (0923) 24235 


FACTORIES AND 
WAREHOUSES 

LEEDS— FREEHOLD 
Warehouse/ Facto ry 

Fir»t rune oftcred. 

NEW BUILDING best location 

50.000 H.tt. Bius. 

Grinr **al>ab'e to quiU’ying user 

All Enawlries Gci TS627, 
FiMHiiSl T.mes. 

10 Cannon Street EC4P ASV 


FOR INVESTMENT 


CENTRAL WATfORO — New etdea devetop- 
mont— oresnse of, 3.000 » t!. 

a.aiUhic IflBJ— Cordon Hudson & Co.. 
Watford 39711. 


A FINANCIAL TIMES SURVEY 

INTERNATIONAL PROPERTY 

FRIDAY 4th JUNE 1982 

The Financial Times proposes to publish a Survey on International Property. 
The following topics and countries will be discussed. 


FOR SALE 


A 50 PER CENT ctuie is offered Iff 9 dfK 
^onwnercjal droowtv IK M a mulfi. 
narorul co>rn,ni. OYOOjcme 160.000 
o.j joBro». Pnnt'PaU o«Jt pleise. Fui! 
OfU.ij, *ri» Bon T-ibB. hMWrli 
Tunot. >0. Cjh non Street Louden EC4P 
CBY. 

SOUTH EAST LONDON. ICJ-HT — Two 
maoci n snon in snnve loution. One 
mull isle te»unL CUMWrJ* prcduc;na 
£.10,250 per annum eulusure. Freeliold 

£135.003. boucLAS smith 01-299 

* 274 . 


OFFICES TO LET 


SPITALFICLDS C.l. — - Citv frlna* relur- 
blife merit 5 the me £>««/ Residential 9863 
sq. ff. Grets- freeticia tar uir. 
Protheroe Carier & Eason 01 > 2 d 8 E 7 B 1 . 

EALING W 5 — T.e 50 - 4 . 40 Q sq ft. E*- 
tcllcnl modem Office, » let an short 
terms in two buildings. One wah park, 
mg. TAYLOR ROH. 27 . Albemarle 
StH. Lcndon WIX 3 FA. OI-AOZ 1607 . 

NO LEGAL COSTS Oft FEES. Same day 
oeruparlofl Of lu/urv turn. & lerv offites 
with all amer.itei thinugnciii Central 
tonrfgn and C.ty. SPACEBAN< 01-754 


WORLD RENTAL LEVELS 
THE UNITED KINGDOM 
THE UNITED STATES 

fa) Sew York; ib) Los Angeles; 
ic) Chicago ; (d) Houston 

CANADA 
THE FAR EAST 

fa) Hong Kong; (b) Singapore; 

(cj Indonesia 


AUSTRALIA 

JAPAN 

FRANCE 

WEST GERMANY 
BELGIUM 
HOLLAND 
SPAIN 

REPUBLIC OF IRELAND 


For further mforTnatum and advertising details contact 

Peter d’Aguilar on 01-248 4886 

FINANQALTIMES 

EUROPE'S BUSINESS NEWSPAPER 

The content, size and publication dates of Surveys in the Financial Times 
are subject to change at the discretion of the Editor 


















INTERNATIONAL PROPERTY 


^D^Tbublin Corporation 


SEAWATGH 


A CORAL ISLAND HOME IN THE HEART 


Multi-Storey 

CarPark 


OF THE FLORIDA KEYS 


Spacious luxury apartments in a very private 
marina community set in woodland overlooking 
the Atlantic and Gulf of Mexico 


at Drury Street/ 


Designed for comfortable carefree lifestyle with 
planned recreation and sporting facilities within a 
secure environment 


KEY WIST — 50 miles MIAMI — 95 miles 


Lr. Stephen Street, 


2 bedroomed apartments from $190,000 


Dublin 2. 


For full details of these exclusive retreats 
contact the sole U.K. Agents: 


Dublin Corporation has a site at Drury Street/ 
Lower Stephen Street on which it is proposed to provide 
a 450/500 space multi-storey car park.. 

Tenders are invited for a lease of the site on the 
basis that the successful tenderer will design, finance, 
build and operate the carpark. A Brief containing further 
particulars together with a site map is available at the 
Development Department, Exchange Buildings, Lord 
Edward Street, Dublin 2, on payment of a deposit of £50 
which will be refunded to each tenderer who, by the time 
set out below, submits a bona fide offer, not 
subsequently withdrawn. 

Tenders must be submitted in a sealed envelope 
marked “Offer — multi-storey car park — Drury Street/ 
Lr. Stephen Street” , to the 

Assistant City Manager, 

Exchange Buildings, 

Lord Edward Street, Dublin 2, 

not later than 12 noon on Friday, the 30th July, 1982. 


PHILIP ANDREWS 
2 Duke Street London W1M 5AA 
Telephone: 01486 5991 
Teles: 25734 


WE GIVE YOU THE KEYS 

A JJZ. Financial Corporation Development 


Florida Contact 


Senior executives from 2 major US' real estate firms 

will be in Europe to offer a wide variety ot altroaive properties. 

with most located in Florida. The < lficrings vyii l it ichtde a 
variety of qolf course and oeesrifroni. residences, plus rental 


Munchcn 

' .2175-24/5 

fierjahrzeit • • 

Frankfurt 

24/526/5 

Frankfurter Hof 

Hamburg 

' 26 5-27/5 

Fierjahrzeit 

Brussels 

27 5-29. 5 

Hyatt; • ' • 

Stockholm 

29/5-30/5 

Sheraton 

Geneva 

50/5-2 '6 

Hotel ilu Kirone 

London 

2Z6-4/6 

Dorchester - 

Zurich 

4.6-7' 6 

Doider Grand Hotel 


.Broker and investor inquiries are invited. 

. [ or information, please contact • 

John Kiordan ( First Colony Properties'! 305, .592-000 1 
o' Guy-Gi <iv (Radioe Gorporatiortj 305. '4-28:4000 it: Florida. 
• . German &• Swedish spoken. 


Cluttons 


Privacy 

Anonymity 


FORESTRY 
IN GEORGIA, U.S.A. 

AN ATTRACTIVE INVESTMENT 

245 ACRES CLOSE TO ATLANTA 

Details from Groavanor Street Office as below 


74 Oromnor SDMI London VflXBDD Tel. 01-491 2788 

totes Crt—p y Hg.-ogm Chicud Aar** Mwwy CWI>rt«<W 


To many people. New York is a city of 
strangers. Yet true privacy is very rare. 

Fortunately, there is 525 East 80th 
Street, the quintessential condominium. 

Situated on a lovely side street of the 
residential Upper East Side, it offers a 
degree of privacy not normally achieved in 
New York City. 

By design, 525 East 80th has been kept 
intimate yet reserved. With only 68 apart- 
ments on a total of thirteen floors, it feels 
more like a European residence than a New 
York condominium. 

The apartments themselves are unusu- 


ally homelike (two, three, four and five 
bedroom units of 1400 to 2600 sq ff) . With, 
sunken living rooms, spacious kitchens, 
custom baths. And a very discreet, helpful, 
efficient staff. All priced from $290,000- 
$745,000 (US$). 

"We suggest you contact us soon as only a 
few choice apartments remain. 

For the individual or family, or the exec- 
utive who requires a combination of ele- 
gance, privacy and individual attention, 
and who seeks the financial advantages of a 
condominium, 525 East 80th is the quintes- 
sential condominium. 

Brokers welcome. 




MANUFACTURERS OF 
TURULAR STEEL 
PRODUCTS 

for rural industry 
and Government 


w 


w 


Established 30 years, well re- 
spected product name. 1300 sq. 
metre factory on 8,000 sq. metre 
land, located 10 k.m. from 
Adelaide, the Festival City of 
Australia. Population 1.25 mil- 
lion. 


Annual turnover Aust-Sl .000,000 
P rieeA ust. $850,000. 


Assets valuation invited. 



Enquiries to: 

The Managing Director, 


STRUCTURES PTY. ITU. 

p.O. Box 46, 
CLARENCE GARDENS, 
SA. 5039, 
AUSTRALIA. 


TheQiimtessentialCca^^ 


FLORIDA U.S.A. 


(212) 772-7771 Teles : #427 -S24AYL Model apartments open. Selling Agent: Metropolitan Living, Ltd, 
525 East 80th Sl_ New York, N.Y. 10021 C.S.A. Builder: ROCKEOSE Construction Corp. 

This is not an offering. Offering by prospectus only. 


PRIME NEW YORK LUXURY CONDOS 

Ideal for investor 

Shows excellent & immediate return 


Elegant and spacious condos in entirety newly constructed luxury building 
In Upper East Side of Manhattan 
2. 3. 4 and 5 bedroom apartments 
1.500 re 2.500 sq ft {140 ro 233 eq metres) 

5280.000 «, S 750.000 USS 
Substantial discounts for '* bulk purchases '* 

Call or write immediately for brochure and additional information: 

METROPOLITAN LIVING, LTD. 

525 East 80th Street, New York, N.Y. 70021 
212-772-7771 Telex: 427-824AVI 


SAN FRANCISCO 

SUTTER STREET 
FIRST CLASS DOWNTOWN 
LOCATION REVERSIONARY 
OFFICE INVESTMENT 

$4 Million (Cash) 

$6 Million Approx 

Mortgage Lome Assumable 


West Coast, Marco Island 
Naples 

OUTSTANDING 
BEACH PROPERTY 

2500 FT. ON 
GULF OF MEXICO 

30 ACRES 


Jems Lang Wootton, ICO Mount St., 
London, W1. 


London, Wl. 

Tel: D1-4S3 6090 


Sell all or will divide 
in 4 ac. paresis 
Seller Financing available 
WILL CONSIDER 
JOINT VENTURE 

901 unit condo hi rise /hotel zoning 
Beady for development 
Call/write Owner Mr G. A. Pstrulia 
1276 E- Butterfield Road 
Wheaton, II. 60187. U.S.A. 

To!: (312) 690-1800 
Telex: Z702S8/EXPRSTLX CGO 


Roh F.H.B. 


SWITZERLAND 


4 FLORIDA 


Secure a Swiss F -c-ahold proparty 
before foreign purchase Is prohibited. 


THERE IS GROWING CONCERN IN GREAT BRITAIN 
THAT EXCHANGE CONTROLS WILL BE BV FORCED AGAIN! 
FOREIGNERS can buy apartments freehold on LAKE GENEVA. In MOntreuX near 
Lausanne, or all-vear- round resorts: 5t Ccrque near Gene va. Vlllars . Verbicr. Los 
Dlahlerets. Lcvstn. etc. FINANCING SC-70 1 ^. AT LOW IWftHliS I ftA TES. Also 
quality properties in France: Apartments in EVIAN on the lake^aiHJioit-JS mins, 
from Genova, and luxurious rHIas VERY NEAR THE BORDER OF GENEVA. buHt 
to your specifications. Advise area preferred. 


The opportunity of a lifetime to own 
■ palatial residence on a secluded site 
In too most presdclous part of the 
" Sunshine State.” Live uneog the 
•flee of Florida. 


SWISS 


Write to: Dovcfooer. eJoCLOJE MAN SA. MachRwcnM. TCOS 
Switzerland - TrU (21) 22 35 12 - Tefc® Z51BS n» 


Tctai 251 BS mulls ch 


Write sale by the owner: Sam A. 
Creech lota. Sr.. 200 West Palmetto 
Perfc Road. Suite 502. Boca Raton. 
FL 33432. Tel' fOlO 17 305 392 
Sot S (or In the U.K. 061-442 74l». 


BUILDING 

LAND 


Cote d’Azur 

exclusive 


FLORIDA INVESTMENT 
PROPERTY 

296 townhouss apartments plus 
small shopping centre loured in 
Tampa, Florida. Price $18,700,000. 
Suggested terms: $1,900,000 cash 
o 0 «n-paymcot. • a mortgage ol 
$7,000,000 at 10% interest only lor 
(6} years. 

WTite P.Q. Box 230 
McLean, Virginia 22101, USA 


INVESTMENT & LAND 
DEVELOPMENTS 


Freehold lend with planning per. 
mission and planned residential 
developments for private or cor- 
porate investment participation up 
to e maximum of 60%. A minimum 
of £50.000 is rflQuIred. short tonn 


1-3 years yielding high returns com- 
pared with the UK proporty market. 


OPS U<J. Tel: 439 9328 (24 hr*) 


USA — Reel Edzh Investments from ■ 
£13.000 to £16 million, NARIC are 
specialists In property Investment In the 
ratildiy expand Ins Soutfi West USA- 
Prtme locations arc currently available 
fit Dallas. Fort Worth, etc., etc. Oppor- 
tunities for developed and uo- d c ral o p cd 
real estate producing current income and 
or capital growth. Sole cwnersbin or 
la tm ventures. Financing available, 
In v u stin w it advice and guidance tar all 
mature In Saudi West. USA. North 
American Realty Investment Corporation 
Ltd- 27 Dover Street. London Vn X 
3RA. Tel. Of-439 89SS-02S7. 


Individual Dints wtth soeclai permis- 
sion for the non -Swiss to purchase 
presents a unique prtvftege to have 
a. chalet constructed to your own 
choice. Thu land Is Ideally situated 
for Lake Geneva and a number ol 
resorts, also the plots are tally 
serviced. 


For details of reasonable prlcus and 
low Interest Swiss credit terms don- 
tact : 


Renate Vorbauer 
Kiefemstr-3 
D-4134 Rheinberg.l 
West-Germany 
Tel: 2843/6106 
Tefex 8121168 


International 


Tel : 07Q5 B6M 1 1 
13d London Road. North End. 
Portsmouth. Hants. 


FDR SALE— -Privately-owned leasehold and 
perpetual mineral rights on oil and gas 
prospccti in U.S.A. Ltavd & Thomsen. 
Bov 18*7 Jackson. Mississippi 39205 
Phone. 601 300-5034.' 




Financial Times Friday May 14 .1982 


COMPANY NOTICES 


COMPAGNIE FINANCIERS DE PARIS 
ET DES PAYS-BAS ' - 

fi/ctfee to Sharehok/ars and & f^dais oftf&Nan-VbGng 


ir/S-G. Ytirburg & Co. Ltd. (BJ2.C. Units) 

As <fescr5*d in the notice pti Wished inthbnswspaper on 13th 
April, 1882, ownership of the shares of Catnpaghie Fmancwre <fa 
Paris et des Pays-Bas has tea n tranafroed To the RepubBc of 
France. 


Accordingly; notice is hereby given, purauant to ConcB&nfPJ of 
-die Non-Voting Certificates for die B.D.C. Unto, of te r mina tion of 
the contract contained thatein- Such ttanats&on is to have 
immediate eff e ct . 


Shares oFF-F.TflO 


Under tha terms of the natioraSsa tio n. holders of shares of 
Compagnie Brandos de Pads et des Pays-Bas wffl receive. In 
exchange for their shares. Boating Rate Bonds issued by Cafese 
Natbnale des Banquas and guaranteed by the Republic of France. 
The Bonds, which wS have nominai vahtesof F-FAOOOcrF-FJDO, 
wffl be redeemed by 15 approximately equal anrarf instafenents 
detsmtined by the drawing of lots. Redemption vriH be made at par 
on 1st January in eacturf the years from 1983 to 1997. Interest wffi be 
payable serm-annually, in arrears, on 1st January tetd 1st Jtdy in 
each year. Tte interest ratewSl be equal totiieaveragetete of retmn 
on fired interest French Government loans, which are not indexed 
either for capital or interest, and which were issued noth a Inal 
maturity in excess of seven years, as determined onthe secondary 
market of the Bourse da Paris during tha twsnty-flwe w a ste 
m i nwtffatrf yprececBnq the commencement of each interes t perio d. 
The first interest coupon will be payable on 1st July, t9Stat. 
F.F.415.64 per Bond of F.F.5.Q00 and F.F.41.56 par Bond of 
F.F.50Q, wfach is equivalent toaffossyfeW of 17.32.per cant per 
annum. 


Tha B on d s wffl be issued in exchange for the dares of 
Compagnie Finandere de Paris et des Pays^Bas at die rate of 
F.FJ03JB nominal of Bonds for each shapasurnandmd. Fractions 
of Bonds will not be issued. Until 13th February, 1983 shareholders 
with fractional entitlements to Bonds may, at their option, either 
receive cash for such a fractional entitlement or (if they pay In cash 
the difference between the amount of such fractional entittemdnt 
and tha faB nominal amount of a Bond) rocaara a further Bond of 
F-F-SQQnominaL 

Paris, or other bat^ andkKStaiiona in Francei Unt^lo^^n 
shareholders may lodge shares through S.G. Utarimg & Co. LkLr 
at the address bakwtf. 


BJ».a Unite of F.FS 

RoHovraigthetemtination <rf*eD^»titeiy Cttttact, hoktesof 
BJJ.C. Units should surrender their C e r tificates tp S.GiViferburg & 
Co. Ltd. In acMtdanoe with the terms of the rw ti ona fi sation, the 
holders of 20 B.D.C. Units or integral mtrftiplas of 20 B.D.C. Unto 
iriaytBquastthatiheiHidBTlying shares bedepostedmexchangafor 
Bonds tn the mariner described above. Fraction^ entitlements to 
' Bonds viSI be deait with as inc&cated above. -.. . 


Holders of lass then 20 B.D.C. Units wS onfy rec«ve cash. 
S.G. Warburg &-Cft Ud., will, in due course, arrange for foe. 
underlying stores representing tha aggregate of foe Units 
comprised in such holdings to be exchanged for Bonds (or 
payments of^ fractional entitlements) andfor theaaJeof such Bonds 
on the Bourse de Paris. The proceeds after deduction of alt 
expenses, taxes arxicommissians will be distributed pro rata to the 
persons who surrtindered the B.D.C. Urat CertiRcates. Hie tinting 


of the lodgement of underlying shares and any subsequent sate 
Bonds wB!be at thediscretion of S.G. Vtorbuig & Col lid., and may 
depend on the timing of the surrender of foeSJXC. Unto. 

Holders of B.D.C. Unta whore holcfingseaceed20B.D.C r Unto 
butwftich are not integral multiples of 20 BJ5.C. Unto must lodge 
such Units in two parts, onei^iresenting an inteffal nudtiple of 20 
B.D.C. Unto and theother reprasentfog foe balance ctf less thte 20 
B-D.C.Urtits. 

Holders of B.D.C. Units are advised, to surrender their 
Cert ifi c a tes as soon as possWa to S.G. Warburg & Co. Ltd.. 
30, Gresham Street, London, EC2P2EB (TeL No. 01-8004655 Ext. 
6118) from whom kxJgememformsandfurtherinfomationnay be 
obtained. 

S.G. WARBURG & CO. LTD, 
asDepoatary 


MESSINA LIMITED • . 

(Incorporated in foe Republic of South Africa) 

INTERIM REPORT AND DECLARATION OF DIVIDEND 


CONSOLIDATED PROFITS (WtauUtted) 
Operating income 
Interest paid 


Six month* ended 
*1.3.82 S1J.B1 
IROOOll 


Net income before taxation 
Taxation 


Net Income after taxation 
Attributable to outside sfiareholdera 


Net attributable Income 
Dividend No. 61 


Eamlnos no- share 
Dividend per ordinary share 


(Centra 

1B4.T 138.8 

22.5 22.5 


Number of shares m Issue 


31.3.82 51.3.81 

(OOON 

VI .461 11.326 


31.3.82 31.3.81 

(ROOOtt 


CAPITAL COMMITMENTS 

Commitments In respect of caoital expenditure 


COMMENTS ON RESULTS 

t. Operating income tar the she months Iweaied hr RS.1 million to 
R32J2 million. However, owing to significant Increase* In Interest 
charges and a higher provision tar .taxation, earnings per snare 
amounted to 154.7 cents ccsnparad wftfi 138.8 cent* In 1*81. 

2. Earnings tar the six months were derived entirety from Industrial 
ooerrttons. the mein contributors being ttw aotomodve companies. 
Depressed metal prices and lower production resulted hi the mining 
oocrattons incurring attributable losses of RS.6 ml I Boo. 

5. There are no Indications that selling prices of the Group's mining 
products will improve during the remalntag six months. In edtmton. 
there is a decline In motor vehicle sales In line with the gunerai 
.economic downturn. These factor*., coupled with lower vehicle profit 
margins arising from the devaluation of the Rand and the import 
surcharge, are likely to result In earnings ter the second Ux months 
of the year being lower then the comparathm period in 1981, 

4. The Company changed its name bv special resolution to Messina 
UmHred on 28 Jam ary 1982. The listing of the Company's ordinary 


shares on the Johannesburg Stock Exchange was changed from Minina 
Copper to Industrial Holding with effect from 5 Aprtl 1982. 


DIVIDEND 

Notice Is hereby given that Dividend No. 61 of 22J cents per 
ordinary share has been declared payable to shareholders registered In 
the boors of the Company at close of business on Friday, 2 July 1982, 
The dividend has been declared m South African currency and d indeed 
warrants will be posted to shareholders from Johannesburg and London 
or or about 30 July 1982. Dividend* payable from the London office 
will tc and in British currency cor verted at the rate of «cbange mine 
on Z July 1982. 

South African Non-Resident Shareholders' tax will be deducted from 
dividends due to shareholders whoso addresses in the register are outside 
the Republic to South Africa. 

The transfer books and register of members will be dosed from 
3 July to 9 Joly 1982. both dates inclusive. 

By Order of the Board 
MESSINA LIMITED 
A. W. BRADSHAW 
-London' Secretory 

Registered ofltaei Transter ottco*-- 

17th Floor. 1S4 Market Street. 

Main Central. Johannesburg 2001. 

MainlEioft Streets. 6 Crrerewt _Ptace. 

JOHANNESBURG 2001. LONDON SW1P 1PL 

London. 

12 M« y 1982. 


COMPAGNIE HNANCIERE DE SUEZ 


SOCIETE ANONYME WITH A CAPITAL OF 1.421.698.500 FRENCH FRANCS 
Headquarters: 1. Rue D*Asttrg - 7 5008 Paris. 


NOTICE TO HOLDERS OF 79» CONVERTIBLE DEBENTURES MM 19BS 


Pursuant to Article 
February 11. 1982 and 
Francalse on February 13. 
the principal amount Of SI 
Financiers de Suet, cessed 
Suez as of February 13. 1982. 


Pursuant to tho foregoing Law and Decree No. 86-176 dated February. 
1982. which was published In the journal Official de la Repubftaua Francalse 


February 21. 1982. the holders of the Suez Debentures may elect, up to and 
Including May 20. 1982. to exchange their Debentures for obligations issued by 
Calsso Nattotimlc des Banquet, an agency of the French Republic. 


The Bonds of Cause Nniotwle des Banquet, which will be denominated In 
the urincioal amount of F. 3.000. or in fractions of F.SOO. will have the following 
characteristics: 

—The payment of principal and Interest and other incidental expenses are 
guaranteed by the Republic. 

— They are nuootlahlc and are listed on the Paris Stock Exchange. 


“They bear Interest from January 1. 1982. 

—Interest will be paid on a semi-annual basis, commencing July 1, 1982, 

— The rate of lowest will be eouaf to the rate at return tor French Government 
borrowings, whose principal and interest are not indexed and which are issued 
■t a hxed Interest rate and have a maturity date greater than seven years, as 


determined to . the Paris Secondary Market bv Caisae des □ soots et 
Consignations during the first twenty-five weeks of the seral-aomial period 


preceding such determination and. tar the first Payment period, the compilation 
period will be from July 1. igai. to December 22. I9B1 and the coupon, 
which win be payable on July 1. 1982, wilt be equal to F. 4 15.64 par 
F. 5.0 DO principal amount and F.41.S6 per fraction of F.SOO. and 


des Bannues will redeem 


-commencing January 1. 1983. Calssa Nationalc des Barques will redeem 
these obligations at Par. by lot (which results will be published In the Journal 
Otficlcl). In fifteen approximately equal annual lestalments. 



tunei duo 19BS may ex e rcis e . the 


irloa by any appropriate means, 
alder* choosing to aseardao their 
to Suez. Service* Astorg. 1, Rue 
nil determine date of notification^, 
iv telex CE50S23 FI. or deliver 


listed oo too Debenture together 
payment doe May IS. lgeZ. 


payment dee May IS. 1982. 

Tho exchange wHl be made on toe baste of a price of f. 6,592.1 3 per dollar 
1.000 principal amount of Debentures, calculated by multiplying the oti wifit 
value of a share of Common Stock of Snax. which la F.423.09. times too 


conversion rate set Torto In the Indenture relating to tho 7% Convertible 
Debe n t u re ? duo 1985. which Is 1U1 share* of Sure Common Stock per 
Debenture. 


Is 15-31 sh ares of Sure Common stock per 


Holder* are advised to obtain c ur rent price oooUUuus tor tbe Sure 
Debentures and the obligation! of Cslase National* des Banques. 


to the option 
not submitted 
September TS. 
tho Debenture 
Scot p» on date. 


II b 

as forth |i 
tar oxchan 
1982 and 
plus t Fret 

B anoue de L'fndochlitc at de Sues and the designated paying aganta win be-, 
available to furnish Debenture Holders with Information concerning both the - 
practical detain or this exchange and, hi particular, the treatment gf fractional 

briamFL 

COMPAGNIE FINANCIERE b£ SUEZ 






JU5CO CO. LTD, 


Advice has been received .from 
Tokyo that die 57th Ordinary 
General Meeting of shffimeldfin of 
the Company will ba. h«d in tha 
conference room (Room 401) of 
Offrka Chamber of Commence and 
industrial Building 56-7 Hashizume • 
Cho. Uchlhon-Mechi. Hwashi-Kv. 
Osaka.- Japan, on Monday. May 
17th; 1982: beginning at 10 s.m. 


MATTERS FOR DISCUSSION 
-AND APPROVAL 


Proposal No. 1: Cancoming approval 
of the balance sheet as of Feb ro- 


of the balance sheet as of Febru- 
ary 20, 1982. end tha business 
report era cement of income end 
retained earnings, end tbe pro- 
posed appropriation of retained 


•■mlng* for toe 57th fiscal umi 
(period covering February 21. 
1981, through February 20. 1982). 


PropossT. No. 2: Concerning partial 
amendment . to the Articles ot 
Incorporation. 

Proposal No. 1 Concerning the 
etsctioB of 24 new directors. 


Proposal Mo. 4: Concerning tha 

weetioo of on* new statutory 

' auditor. 

Proposal No. 5: Concerning the 

revision of rewards for directors 
and statutory auditors. 

Proposal No. 6: Concerning the 

omsentstion of retirement gratuity 
is outgoing directors. 


HILL SAMUEL A CO. LIMITED 
45 Beech Street 
London EC2P 2LX 


1M TRAUMA. 
PtWUC LIMITED COMFAKV 


NOTICE IS HEREBY GIVEN that the 
ANNUAL GENERAL MEETING ol THE 
THARStS - PUBLIC UMITED COMPANY : 
wifi be bald at NdAez de Balboa. 1 20 ’ . 
Madrid 6, os Mooday 7th June u ' 


1 2.30 pjn. for the following purposes:. 

1. To consider and adopt toe Report of 

- toe Directors and the Accounts tar 
toe year ended 31at December 1981 
with to* Report of the Auditors 
thereon and declare a dividend (Reso- 
lution No. 1). 

2- To^ re-elect Directors (Resolution Nos. 

3. To Ve - ap p oi nt - the - Auditors anU to 
auttorisa tbe Director* to determine 
the remuneration of too Auditors 
(Resolution No. 63- 

By Order of toe Board. 

R. N. PETERS. 


Registered oaue: 


130 Weal Gears* 
Glasgow G2 2HF. 
13to May. 1982. 


1. Any menber of the Combany eotitlod 
to attend and vote at tbe Annual General 
Meeting coovened by toe toregohui Notice 
b entitled to appoint one or more praxta* 
to attend and. oa a poll, vote on Ms 
behalf. A proxy need not be a Member 
Ol the Company. To be effective, forms 
or proxy most to* deposited it tbe Ban* 
of Scotland. Re olsfr a r Dopartmont. 2£A , 
York Place. Edinburgh not fesa than , 


48 hours before too time- appo i nted for ' 
tho meeting. 

2. Holders of Share Warrant* to Bearer 
who wish to ba present at the Matting i- 


or rote by proxy may obtain Instructions 
from tit* Resi stored Office Of toe Com- 
pany or from the following appointed 
depositaries: 

Lexer qf Frfircs et Cifi. 121 Boulevard I 
Hsuasmson, Parte. 8t ■ J 

Banuue Vernes et Commercial* do Pans. 

52 A»_ Hoc he. Paris- 8*. | 

Basque d* tans et dee Pay^Bas. 3. rue 
d'Aotin. Porte. 24. 

Q-drftt salsse, Lausanne. SwimrUnd. ' . 
Uoydj Bonk (Behtidurt S.A., 2-4. rue 1 
Ro vafe; Brussels. 

Banquc Gfiofiral* du Luxombogre. la., 

14 rn* Aid ringer. Luxemoourg. 

3. There ore no contracts of eertico 
betw tt t i tho Dfroctor* and the Company • 
at too date et this notice. 


PROVINCE DE QUEBEC 

LOAN RF 125,000,000 


LOAN RF 125.000,000 
7V% 1812,1887 

Bondholders are hereby informad 
that the radomption instalmom al 
FF 12.00a000 duo on June 75. 1982. 
has boon entirely . m*t by purchases 
In the marker. 

Payment ai coupons due on Juno 
15. 1982. wOt nks pises at the 
Following Bonks: 

CREDIT LYONNAIS. Luxembourg — 


CREDIT LYONNAIS, Luxembourg — 
CREDIT LYONNAIS. Pans — ALGE- 


MENE BANK NEDERLAND N.V. 
Amsterdam — BANCO DI ROMA. 
Rome — BANQUE DE PARIS ET 
DES PAYS-BAS. Paris — COM- 
MERZBANK A.G . ' Frankfurt — 
KREDIETBANK N.V.. ‘Brussels — 
LLOYDS BANK INTERNATIONAL 
LTD.. London. 

Outstanding amount after this Mth 
i mortice Cion: 

FF 74.000.000 

The Fiscal Agant 

CREDIT LYONNAIS— LUXEMBOURG 


THE SCOTTISH 
AGRICULTURAL SECURITIES 
CORPORATION PJLC. 
71% Debenture Stock, 1990-92 


NOTICE IS HEREBY GIVEN that the 
REGISTERS of the Conioreuen'i 
above mentioned Debenture Stock 
will ba CLOSED far TRANSFER and 
REGISTRATION from ISto to 31st 
M*v. 1982- both days Inclusive 
By Order of toe Board. 

H. J. McTURK. 
Secretary. 

48 Palmerston Plata. 

Ed in Bur nil EH12 fiSR. 

14th May. 1982. 


IMPERIAL 0APANSSE GOVERNMENT 


4?« STERLING LOAN OF 1910 
The Bank of Tokyo. Ltd., ore Instructed 
by the Jspoikm Government to announce 
tost the COUPONS doe 1st June T9B2. 
No- 144 detached from ontacod bonds 
will be paid on and after 1st June 1982. 


They shoohJ be presen te d tor payment 
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P4*»ISI 




On the dark side of death 


Elizabeth Hall 

Berio by ANDREW CLEMENTS 



by NIGEL ANDREWS 


An Unsuitable Job for a Woman 
'AA> Gate dotting HiU 

The German Sisters t.\A» 

Academy 

Polyester (X) 

Classic Oxford Street, 
Cinecenla PiccadiHv 
1. The Jury (X) 

Warner Wei* Knd 

Welcome in Angst and Aliena* 
non week in the cinema. Hoy: 
do you make a saleable com- 
modity of wall-to-wall anguish? 
Chris Petit's An I'nsuitnhle Jab 
ioT a Woman is the Bntteh 
runner m the Cir.e-Sisffenna 
stakes thiF week and Marsareihe 
con Troua's Tire German Seders 
the Teutonic one. 

The first fiim stings us like 
fine drizzle with nshl lipped 
British despair as a P. D. James 
murder novel is iraa^lated to 
deepest, darkest rural Fnalanri 
Tiie second in full or j.iqgtrd 
German doom and polifu.il 
anaiomr«ins^ 2s a ;. ouiti; woman 
-iournalisi (Jutir Lamps i intes- 
tates the death of hrr 
terrorist sister. Suspect 
"suicides" are at ihc heart of 
each movie. So is a view of l:fe 
as a vast anil darkling Daedalus 
maze from which no sturdy 
fhrp.id — o&repi perhaps a hang- 
ins rope — lead- lo freedom. 

Adapting a thriller novel and 
filming in colour. Petit makes 
more concc.-tions than ir; 
FTndru Ok !« hanging has jll- 
wcather '.LcU.chmer: .on a 
populist peg. In a Peril film 
stricken souls exchange pained 
dialogue m bleak landscapes. 
Eve r„v word scrape- on an open 
wound. and X.nurtv srands 
indifTerently hy. Tin- i- Eng- 
land. the skits ore pasty. grey, 

lh & null m\ .ay-, are dcprc-Aisig. 

and i be socj.jl funiial! tiw a re 
preserved. No abandoned 
-'iiriok when the detective 
heroine (Pippa Guardi dis- 
covers. her bn-L-, presiding over 
a pool of blood, his own, at fits 
desk, f He has shot himseif.l 

No reei.hy kis,es or Lotinate 
ranomllin? when r he property 
tycoon (Paul Freeman) who has 
hired her to .-oho his son's 
bizarre death — he hanged him- 
.-elf dressed in a woman'.' 
frock — takes her to hn.l i»n 
mute No giveaway snarls and 
hisses from the bleakly anri- 
pathetic Bjlhe Whifelaw. who is 
Freeman’s woman Friday ar.d 
mor*»-i ban- helpmeet and might 
be behind ii all. 

The plot is ultra-convoluted ■ 
and keeps slithering out of 
reach (ike a startled snake in 

New York City Ballet. 


thick grass, Bur Pefti has a 
wonderful compensatory feel 
for the drip tomire of English 
emotion. Motive and pa^Uin 
arc squrezed out drop by drop 
in a rural- England landscape 
that seem* bloated with past 
ram and ever cloaked with 
pencil-grey cloud or tliin sun. 
Cameraman Marlin Schuler, who 
u<ed to work with Win 
Wonder*, has done marvels with 
!he colour: Vlaminck for The 
exteriors, the gun metal skies 
and blotchy-red Tudor rou age* 
and nmsioas, and a kind of 
fdm n tfsr cub I'm for the 
angular, overlapping lighting of 
ihe early office scenes. 

There are Cv'nny rinNJT 
inurhe.v a iuy car accidentally 
t ifitis prophet ically l knocked 
into a fijh-tank. the beautifully 

anibtcuouv placing in one 

shadowy shut of Freeman’s 
band — i-. i: caressing or 
titrr-.itcnmg? — near Pippa 
• Liard’s rc-cfc. And best of all. 
a worri!t>-,4 *etpiecr scene in 
’h- middle- whicli has an un> 
pi>h and ssikly magic worthy 
lit Hitchcock: a retnn-.trui-tian 
<-Ulvid«- fay Miiii Guard that 
cnme«. horribly, inadvertently 
close io the re3! thing. 

* 

The Germs*; iisfrrv garnered 
the Grand Pnx at last year's 
Venice Film Festival’ but 
doesn: dance Hi the same 


hPHlihfu) imagistir music. Mar- 
paroihr von TnMla. like her 
husband Volfi-r Schlondnrff fof 
Circle “/ Dism i. seems ax 
much a pnlifu-al lirii.idslu-clcr 
as a movie-maker — grimlj 
.scattering aiiii-uuihoniarian 
pamphlets across the landscape 
of Germany Tmlny. 

In whey-faced .scene* nr 
ancurismal sulemmiy. (he 
lihilar siblings speak up one 
for ihc gradualist (JuMa 
i-ampej, t'other for the revolu- 
tionary (Barbara Suknwa) 
pathways to social change. 
There are 'art and roughly 
tangible semes — ,i knehon 
quarrel, a female warder 
roughly stripping and search- 
ing Miss I atm pc on h«r firsi 
prtson visn — mixed m wilh 
long pro^ramin.iiie dialogues 
staged wilh a sii-jndlisten 
frugality worthy of Play fur 
Today. 

The movie could have Wen a 
feminist .lekyll-an<iJI>de of 
political dualism: nr a JVr-aiM/ 
flung into the front-line uf poll- 
lies in a country alerted or 
perv’crteil — according to la«ae — 
by the Baader-Memhof experi- 
ence. Bui Von TroM.i hasn't 
infused blood and passion into 
her sisterly spokeswomen. 
They're doleful casuahies in the 
social war nor agents, as played 
by Frau lent s J.ampe and 
Sukowa. and their oa-screen 


sat-rififUil passivity becomes a 
glib uicehaniMu for nuking us 
see " tlip system “ as the enemy 
force, the " people " as its 
vii-unm. 

★ 

.loin: Waters's Poiie.-sfcr cuitlcs 
to you hi the full repulsive 
glory of " Odurama a nasal 
liiKli-tOKC sent out lo assail 
nostrils all over the movicgmng 
world. With (he aid of a "smell 
curd "—scratch the different 
numbered .blobs and omr? 
fragrances will b« mstuinly 
released — you can accompany 
drag -queen heroine Divine 
dirough this lourhely madcap 
comedy of camp manners by 
the director of Pink h'lnnnuyu^ 
ail 1 1 fVincIi' Trouble:: 

Never mind die plot. It's as 
luuseiy cun toured a-. Divine'.' 
uwm shape*! vast :md spherical 
in 'fids eljmuur-dre-.v's. an 
haute contuie lauded whale on 
beaches of American gentility. 
She lias a si rife-prune home life 
with her delinquent .son Kenny 
i aka the "Baltimore Foot- 
stumper "l; she clucks and cuus 
in rumuulic empathy with the 
lovc-hfp of her snaggle-toothed 
sexagenarian neighbour (Edith 
Massey, she of the screeching 
lisp—" Children would only gel 
in the way of uur erotic" life- 
style"]; and finally she falls 
head over hieh-heeU fn love 
herself with Tab Hunter. 


Meanwhile ihe nose has it. At 
th<* scratch nf a finger-nail or a 
pencil-poinr. you can assault 
yourself with ihe smell of 
freshly-baked pii/as. ihe scent of 
flowers, the oduur of perspira- 
tion and other exhalations too 
intimate lo mention. Tne film :s 
not, m all candour, Waters’s 
best. Divine's usually uacky- 
and-vvondrnus mannerisms are 
played ;n<i>u> and Ihe 

stnry never quire reaches the 
sleazy-raucous heights of Fr male 
Trouble But who could resist 
" Odorama 


It might certainly improve /. 
Tue Jury. / .suggest the smell 
of cheap after-shave mixed uith 
the odour of bus-office oppor- 
tunism for the tough-talking 
male-chauvinist hero Mike 
Hammer ( Arm -rnd Assante;, 
here Spillaued fnrt.i from 
worthy nbhvion, in his Srsi 
movie outing since Kl-ss Me 
Deadly (1HG5i. Incense and 
Iasi week's bedsheels might 
odume the kinky sc\ clinic 
which Hammer invesiigates. eu 
ru.-iie in uncnveriiie an ex- 
tremely incomprehensible plot 
a hour the OLA and deranged 
Vietnam veterans. And perhaps 
the tangy odour of filmgoer- 
rcpelirnr outside the cinema 
itself would help customers to 
make the nghi decision to stay 
away. 


On successive Wednesdays in 
: ’he Elizabeth Hail this month 
the London SinfonieiU is pre- 
senting a series of concerts each 
. devo’ed to a single contempo- 
rary figure. All three composers 
‘ —Benin. Ligeti, Hen/e— have 
long associations with the 
orchestra and Luciano Berio’s 
has perhaps been the longest 
and closest of all. conducting 
them in a memorable sequence 
uf programmes dating back to 
ihe early 1971^. His appearances 
in Loudon have to a large ex- 
tent accurately re fl tried his 
development through the last 
, IS years or so. and the Sinfoni- 

' p?la has frequently provided the 
mirror. 

The sense of nostalgia in that 
; eolla Lora f ion was if anything 
j emphasised bv the choice of 
• major work in this Wednesday's 
Berio programme. Loboriiims II. 
I.’ any composer of the post-war 
. avant garde tuned into the nysod 
of i lie I9ti(is it was Berio, in the 
series of collage pieces that 
h aunn in 19M with Epzjnme. 

Riverside Studios 


i.a(>oriHtns If, written between 
1963 and 1965 is the most am- 
bitious and complex of those 
attempts to find a viable lan- 
guage in the synthesis of a host 
of heterogeneous stylistic ele- 
ments. literary and musical, and 
the one which runs ihe grealesi 
danger of pretentious failure. 

Returning to the work after 
a considerable absence, one 
feared that its sound world 
would seem dated, impossibly 
wedded to that particular time. 
Berio's infatuation then with 
ihe vocal techniques of the 
Swingle Singers is one of the 
stumbling blocks now. though 

their deployment in this work 
is nol as cloying as it can be 
elsewhere in his output. The 
piling of reference upon refer- 
ence, with an electronic tape 
providing the finishing touches, 
threatens coherence at seieral 
points. But the urgency of (his 
performance under Berio’s own 
direction kepi the piece fresh, 
and ihe laconic delivery of 
Etinardo Sanguineti's text by 


his son Federico was nicely 
judged. Catherine Bolt. Elaine 
Barry and Linda Hirst were 
the Swingle surrogates, demon- 
strating that those tricks have 
nuW pii^ed firmly into the 
repertory uf the contemporary 
singer. 

More recent Berio provided 
the first half of ihe program*. 
Repeated encounter* with 
Sequeu -0 IS. in both n> clarinet 
and alto saxophone versions, 
have failed lo define an imme- 
dialely perceptible character 
such as can be found in the best 
examples of ihe series, though 
Antony Pay's incisive clarinet 
playing nude out a boiler case 
for the piece than ever before. 
The cello concerto which goes 
under liic title of 11 Riwnio 
deed! Xniiridci/io seems to me 
lo demonstrate all ihe short- 
comings of its composer's 
recent pieces, uncritically lyncal 
and almost allowing the orches- 
tral textures io fend themselves. 
Christopher van Kampen was a 
committed soloist. 


It’s All Bed, Board and Church 


bv ROSALIND CARNE 



Pippa Guard detecting in "An 


• . .. k i 

Unsuitable Job for a Woman * 


Franca Rame is not only a 
tine actress, hut a grand 
performer. Il i> hard to imagine 
her in a submissive role in real 
life, whatever the intended 
mevuge in this group of four 
p|j>r. wrii’eti in collaboration 
wim her Husband. Dario Fo. 
who ai>u directs-. I envy the 
tin*' on rhe wall during 
rehear 

The pari* they have treated 
coajuie female, i veu femiaine. 
power; the*e heroine* may be 
angry, hut they are never 
cowed, and they are perfectly 
prepared to enjoy the sexual 
act. despite occasional protesta- 
tions iu the comrary. h is an 
intriguing, contradictory, and 
often eon/ii sing view of our 
sex. which withstands political 
packaging, despite all attempts 
to the com ran. Moreover, a 
series of monologues m 3 
foreign language however 
brilliant, demands something 
special to hold audience 
atiemion: it is an indication of 
Ms Rome's stage presence that 
our interest is sustained. . 

Behind the playing area, sub- 
titles roll up on a screen in bold 
lettering. It is impossible to 
catch both action and writing. 


so I concentrated on ihe Italian, 
except in difficult patches, where 
1 found the translation helpful, 
and certainly preferable to the 
spoken interpretation which 
accompanies the short prelude 
lo the show. Here. Ms Rame 
spells out her views on women's 
liberal ion and the theatre — 
perfectly sound, but hardly the 
best appetiser fur the pleasures 
which follow. 

The opening piece. .4 W oman 
Alttiir. is my favourite, a quasi- 
surrea! slice of domestic life, 
in which the actress exhibits an 
astounding range of tone and 
passion. She slips from exag- 
gerated horror and disgust at 
the heavy breather on the tele- 
phone. to a tightly wound-up 
calm when her husband calls. 
She barely manages to main- 
tain control, and her story 
betrays an earlier breakdown, 
an unhappy love affair culminat- 
ing in a ludicrous public suicide 


Duchess 


attempt All these details 
emerge in an imaginary conver- 
sation with a woman in the fiats 
opposite. 

BV All Hare the Same Tala 
to Tell has a less auspicious 
opening, a crude view of Ihc 
poientia lilies of heterosexual 
sex ( though pregnancy is 
undoubtedly one of them). How- 
ever. the episode ends wilh ail 
extraordinary adaptation of a 
nursery talc, replete with wolf, 
cal. dolly, and electronic 
engineer, which makes its 
allegorical point quite firmly. 

The Airakeubtg returns to 
the home, as the woman 
worker. still surprisingly 
elegant, stirs herself into a 
frenzy between fridge, husband, 
baby, and factory. The final 
offering. Medea, is a complete 
swuch of mood. Once again, 
the rendering is gripping, but 
I cannot help feeling this is no 
improvement on Euripides. 


Bright start to the season 


by CLEMENT CRISP 


5 *1 


A -r.i: 


iyV r.,-\X 

s - J- r>*' 


In tbe opening performances 
last week of us laical season, 
ihe New York City Ballet was 
as grand, thrilling in ballets 
and in dancinu. a.; U_s greatest 
admirers could wish. Looking 
ar such splendour ii is hard not 
tn ui tor the uroai Romantic cry 
against rhe transience of jay — 
Lamartine's O temp'--, suspends 
ion rol — and seek to fix the com- 
pany as it is mom?; but one of 
ihe sharpest pleasures for the 
balletomane is rhe very imper- 
manence of dance, when each 
interpretation is made richer 
and more poignant by its fugi- 
tive nature. 

There was nothing immedi- 
ately new ai ihe start of the 
season — NYCB is girding itself 
for next month's Stravinsky 
Festival — yet balJeis and per- 
formers seemed f reshiv excel- 
lent: Kyra Nichols'. Maria Cate- 
gari. Sean Livery in various 
rules; Jlhmzrnnnn wilh Suzanne 
Farrell; Ballade with Merrill 
Ashley: Four Tcmpcramanr* 

and Square Donee new-minted, 
provided standards of artistry 
impossible elsewhere. 

Mnrorrmi.'a, with its single 
showing at last year's Chai- 


kov.iky Festival . became a col- 
lector y piece. lnjur> to Suzanne 
Farrell caused its absence from 
the repertory, and ns eventual 
return brought recognition thai 
this was Balanchine at his most 
MKviiK-tlv poetic, and that it 
offered so allusive a portrait 
nf Hits Farrells mu.siea! inted- 
ii genre and her beautiful style 
that it was impossible without 
her. (Thai nnothcr ballerina 
will inevitably emerge to dance 
it is one of (he vena in He* of 
NYCE's nurturing of talent.) 

This is Balanchine's fourth 
version of Chaikovsky's homage 
to Moza n , and 1 hough i i is 
unwise to read too much nostal- 
gia into ihe work, there are 
hin-< and references to his 
original staging for Les Ballets 
1933. which featured the child 
Ton ma nova dressed In blark by 
Bcrard. Thus the present cast 
are dressed in black. Miss 
Farrell attended by four little 
girls from the School of 
American Ballet aod by four 
girls from ihe company, wilh 
lb Andersen as her panner (Hie 
only colour on stage the 
magenta back io bis gilei), and 
Christopher d'Aboisc as a I7th 


century valet. 

Mozaruanu is a ballet of 
quiet joys and quiet effects — 
nf quiet sorrows, loo — which 
tell of much larger, grander 
mattery. The opening P»«*a- 
hieru is Miss Farrell as as.su- 
lufa, dancing with extreme 
subtlety m choreography that 
has the simple authority which 
can be found in ihe very late 
music of Gabriel Faure. She is 
attended by the group of 
novices from The company 
school — she is their future. 
Christopher d'Amboisc bounds 
on in the Gifjue. a MoJicrean 
valei with his eccentric leaps, 
quick changes of pace and 
energy, and four NYCB girls 
nexi dance ihe Miuuet. 

The heart of the work mines 
wilh the Theme ami Variations, 
a succession of numljers for 
Miss Farrell and lb Andersen 
that arc elegantly Muzartian, 
clear in texture, but suddenly 
flying in unexpected directions, 
and danced with amazing mas- 
tery of small steps, of quick 
accents, switches of balance 
and impulse. With The finale 
ihe entire cast come together, 
and all the miraculous parts of 


the piece fail into proper place; 
Chaikovsky and Balanchine 
united in their reverence for 
Mo/ari. 

Another Balanchine portrait 
is thai of Merrill Ashley in 
Pall a tic, but here Balanchine is 
telling this prodigiously fast 
ballerina something about her- 
self. helping her discover her 
ability to express feeling (as she 
does in Strait Lakei and show- 
ing off n certain capriciousness 
of temperament. With her 
arrowy limbs and the dean lines 
of her dancing, her sunny ahility 
!o fit in steps with entire danty 
where other dancers might 
slammer and gabble. Miss Ash- 
ley offers a coloratura perform- 
ance. but one having lyric in- 
tensity and strong emotional 
colouring. There Is a moment 
when she spins vertiginously 
towards her partner, lb Ander- 
sen. and falls forward impetu- 
ously into his arms: it is the 
equivalent of a passionate de- 
claration of feeling, made all the 
more felling by the bravura of 
Miss Ashley’s technique. 

Though Bui lade might appear 
modest in scale — apart from its 
principals if has a group of ten 


girls who briefly appear — it is 
not small in impetus or in the 
horizon of its dances; like its 
score it says a great deal with- 
out rodomontade. That il is ex- 
quisitely danced by Miss Ashley 
and Mr Andersen goes without 
further saying. 

Bulb Square Douce ana Four 
Tcuipe runic ui* looked at iheir 
best Iasi week. Temperaments 
has some tiling very like a defini- 
tive co>i, w i Hi Bari Cook as ex- 
ponent of ihe heights and dread- 
lul troughs which mark out ihe 
constraints ut Melancholic's 
world; Hiih Merrill Ashley and 
Sean Lavery the exuberant, rac- 
ing couple in Sangumic. and 
Adaru loaders the drooping, ex- 
hausted Phlegmatic, and the in- 
cisive Maria Calcgan — an 
artist who has come intu her 
own during the past two seasons 
— as a Piling, fierce Choleric. 

Jn Square Dance the expanse 
of the State Theatre stage and 
the admirable lighting both en- 
hance this radiant, ingenious 
work which correlates social 
dance Torm with classic nubility 
of manner. And nowhere move 
classically noble lhan in ihe 
central performances of Kyra 


Nichols and Sean Lavery. Miss 
Nichols pours out dancing here, 
as in every other ballet, with an 
easy generosity and gran^pur 
rhai are all the more remarkable 
for seeming so natural ao ex- 
pression of her temperament; 
Mr Lavery. especially in his 
SarabtiNda solo, is the epitome 
of the premier danseur 
classique. 

This is an adagio variation, 
requiring both physical distinc- 
tion and contemplative dignity, 
which he dances wilh haunting 
beauty. Its implicit dramas 
come from contrasts of dynamics 
and pose, and they are superbly 
expressed by rhis outstanding 
dancer, who allows the choreo- 
graphy to speak through ihe in- 
legriiv and rare simplicity of his 
manner. 

In other repertory works T 
enjoyed very - much seeing 
Heather Watts and Daniel Duell 
in the quirks and ingenuities of : 
Peter Martins' Calcium Light \ 
Sight (Charles Ives made plain). | 
and the continuing excellence ■ 
of company performances in 1 
Robbins' Piano Pieces and Four ‘ 
Seasons. 


Funny Turns 


by MICHAEL COVENEY 


The one concession to West 
End status made by this mar- 
vellous double bill uf Victoria 
Wood (and her husband) The 
Great Soprendn i s the introduc- 
tory imprimatur each receives 
from a real live Russell Harty. 
This may have been a First 
Night gimmick. I do not 
advocate demanding your 
money hack if RunscII does not 
materialise on the night you go. 
But go. nonetheless, you must. 

Forgetting for the moment 
the joyous rotundity of both 
participants, the show is com- 
parable to a really improved 
and sLimmed-down Song and 
Dance. Except that the dance 
come* first. “I do my own 
choreography " confides ihe 
pink-clad magician oui of More- 
cambe via Torremolinos. 
Soprendo's script is top-notch, 
a mish-mash of garbled end of 
the pier chatter and Spanish 
mispronunciation. We are 
asked to be as quiet as pins in 
order (o hear a mouse drop- 
ping. He trips through a 
sequence of sleight of hand 
involving cards, newly laid 
eggs, -upturned glasses of 
water and lorn Daily Tele- 
graphs. All participants from 


the audience were unknown to 
me. except for the musical 
director of the Players' Theatre 
who was jolly sporting about 
his valuable ring. 

Looking for links, r would 
suggest the triumph nf cosmo- 
politan wisdom over metro- 
politan manners. Miss Wood's 
lyrics are, if we do not count 
Go ijs and Dolls, ihe best avail- 
able on the London stage, fast, 
brilliantly worked out and 
devastating)}’ funny. With the 
privilege of sheer laleiil. she 
demolishes everyone you would 
expect to be on her side: Time 
Out. mixed schools, sexual 
gurus and even, in an encore, 
proud Northern ere. 

As one who could not watch 
more than five minutes of Miss 
Wood's recent TV series. I am 
mightily relieved to rediscover 
her attractions first noted in a 
small Sheffield theatre some 
years ago. Particularly clever 
is the way she uses traditional 
lyric formulae tu create real 
poetry of the si reels. And 
Soprendn is » true original tn 
both having his Tommy Cooper- 
siyle cake and eating it. He 
shows you how but you are 
still left goggle-eyed. Two very 
funny turns. 


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‘ oaens May 20 a'. 7 pm 11 was o»l*. 
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bksr- 836 2379. 

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2 30. ««. Otlvcm HOTLINES I SanHofS- D« OBiC* C<m«7 <MOIN 


°‘' 437 ‘ COMEDY THEATRE, s 930 I 071 
card boo- -not B38 143B. Jirp J 
6061 . Mon-FH 0.00. Sat A 1 ,. ,, .. 
Tilin' 3 Eat 515. Price T.2_JiO«fc7.0D 
/not yilWtot tar Cbikbyml. STEAMING 
to* NELL DUNN. _ 


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Mir. 370 
5. Mat* 


IL"; wr*.!arftf. "Ai’W® • 

OF MUSIC. London'! FBW ■ . 


?5uL Pr CARVERY D^NNER^OUOWro 
BV TOE OUTRAGEOUS MUSICAL WILD 


r-ooSoSS- 0 w OB*ite COVCNj'SHWe'N 
PROMS. Sooniored bv M inland 8 b"K 
Ton’: dt 7 30 Atwrnoon or - 
ria«M Festival _al OcbubOi Gnrllc. 
Tomor at 7 30 loWBt Ontodl". S E*Kj 
o( Pronw week. 65 AMPaijetot •.«« 
tor all prrr: tMonScl^ 10 jiy 

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Man 31 & 00 Tristan and l»W*. IMS 

a? 7 03 Simon nSKvET 

7.30 Eanene OnMtn. STRING QUARTET 
Wed a: B OO LKMmt OWrtel. 

CRITERION* 930 3216 : CC 379 6565. 
Gro reduction- Mow t° Tnuri 

7 SO Fri A Sa» 6.00 _* 085- Orrr 300 


J<ailfdK«1 01 DARIO FO-S COM tor 

g phgJT" : W 379 r 6wi ,, n C M 

0891 I Mon-Sat 10 


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PENZANCE- T.30. Mat* W«1 A 

PEPM*? f [RST might Mav 26 at 7 p“ 
A 19 E>« at 0.051. BbO» now. 


GREENWICH. CC 01-8GB T7S5 Evenlnja 
7.45 Matt Sat 4 00 BEAUTIFUL 
DREAMER by Rov HUB*. 

GLOBE*. S CC 417 1S92 439 6770-6779. 
PASS THE SUTLER. The. now famed* hit 
bv Irk. late with WILLIAM RUSH TON. 
JOHN FORTUNE. MADGE RVAN and 
PETER JONES Mon-Tnui B.O Frl A 
Sat 6.0 A B 4S MUST END JUNE b. 

HA V MAR KET THEATRE ROYAL. 930 
9432 Until May 29 Ev'jv 7.30. Mils 
W«3 2.30 Sat 4.0 PENELOPE KEITH. 
ANTHONY QUA YUE TREVOR PEACOCK 
in HOBSON :» CHOICE. A LOnnrd* b 
Harold BrKihDjie. Durricd 6v Ronald 
Eyre. Running w repertoire with a Coat 
«t VarnHh and Captain Broas bound. 

H A Y MA R RET THEATRE ROY aL 030 

9832 PENELOPE KEITH >n CAPTAIN 
BRASS BOUND'S CONVERSION. _ O * 

Bernard Shaw. Previews Juno 3. Open-. 

June IO 

HAYMARKET THEATRE ROYAL. 930 
9032 June 28 -J ulv 7. PETER BARK- 
WORTH T A COAT OF VARNISH. A 

ne w play bv Ranald _MHIal _ I 

H E*'~M AJESTY^S.” " 9 30" CL0t-7_CC 930 i 
4025-6. Group sale*. 379 WSl-J*** 
7.30. Sat mat 3.D. FRANK FINLAY io 
AMADEUS b* PnTra SHAFFER. Directed 
ty PCTER HALL. I 

KINGS HEAD.' 226 1916- Dor 7. Show 

B AND MISS REARDON OR INKS A 

LITTLE, a ua Nr b¥ Hjj j Zuwh 
London" palladium. oi-437 7373 . 

MICHAEL CRAWFORD In >lw Broariwav 
Mutual RARNUM. LvOj 7 30. Mot Wed 
and Eat 2.45. U-e Ihc- Darnufh HoUincc 
* 01-437 »S5. 01-734 89ol 'or Instant 
credit card rowraMm NOW BOOKING 
TO FEBRUARY S_ 19BS. 

LYRIC Ka"MMER 5MITH. .5 CC 01-741 
2311. Last perl- (ml 7..-0. iomor 4 30 
A B.15 RENTS BV Michael W.lcoa. 
LYRIC STUDIO: Last . perfc ion t lomor 
B pm Common Slock'-. THE SECOND 
LINE. 

LYRIC 'THEATRE. Sru'tteinufv Aw. Boa 
OBKe 437 3686 Tol Credit earn 

gSpcSfrSALE^pN^^N. 

FERENCE. A new DU* bv Rofcerl O-wid 
MacDonald. Ergs 8 0. Mars Sat 5.0. 
We d 3.0 . 

Mon-Thgrs 
4 B.30 KKlLiro Taou 


NEW LONDON. CC Drury lane WC2 
01-405 0072 Oi 01-404 4073 tv* 7.4S 
Tue- and Sol 3-0 and 7 45. The Andrew 
Llovd- Wehber-T . 5 Ellol Award Winning 
mu'.lui CATS. Group bOoLInq* OI-JOS 
1 567 or 01-379 h061 LATECOMEPS 
NOT ADMITTED WHILE AUDITORIUM 
IS IN MOTION PLEASE BE PROMPT. 
NOW BOOKING TILL JAN. 29. 

OPEN AIR REGENT'S PARK. CC S 48C 

2431 Kate- D Mara and Chrtitooher 
Neanie in THE TAMING OF THE 
SHREW preview, rroin June 4 A 
MIDSUMMER NIGHT'S DREAM K,mi 
•eoerio* . June 19 SHAW DOUBLE BILL 
from July 1 9 BOOK NOW. 


SADLER'S WELLS THEATRE EC1 B37 ; 

1672H £7 5 3800 Credit . irrtr 10 air. 
10 6 Dm 27B 0871:8 *« 7505 Gro vales j 
379 6061 24 hr in.Unr.V continued rem 1 

2DO D20D. SADLER'S WELLS ROYAL 1 
BALLET until Mr. 22 C.gv 7 30 Sat . 
Mat 2 50 pm. Ton < to Mon CflCNi.a 
THur Mav 20 7 30 Din Sadler » Welt» • 
Royal Ballet A International Guest Artists ■ 
in a Royal Gala Soring Danrr Suwcrip- ; 
Inn tcriDR. Id. 61-278 OSSS lo > 
brochure anv t.me da, d- - 113 M 1 

AMPLE FREE PARKING alter 6.30 Dm- ' 

SHAW. 0I-3B8 1594. JULES CROISET. | 
The distinguivne” Dutch acid. .« A • 
pENTLE SPIRIT __ By. DovMnyafcy. E*BS ; 


_ _ ; 7 30 LAST WEEK. Ends Sat 


PALACE. CC 01-437 6834. CC Hotline 
437 B327 Ano-i-w Lloyd- webber'v SONG 
AND DANCE. Starring Marti WeDb & 
Wayne Sleep. Mon-Frl 9 pm. Mats Wed 
3 Sal 5.45 B.30. Some good teats 

luiI available most oerft. 

PHOENIX THEATRE iCAkrlno Cross Hoad* 
01-036 2294-8611. Eves 8.0 Fri 8 5at 
6.0 A 9 0 ONE MO' TIME! TUE GREAT 
NEW ORLEANS MUSICAL ONE MO' 
TIME 15 A GOOD TIME! Group vales 
01-379 C06T Rum TeledatJ 01-200 
0200 'or instant confirmed CC baotinpi 
24-hour personal service available. 


— - 1 

PICCADILLY. 437 4506 CC 379 6S6S . 
Group vales 01-036 3962 379 6061. ! 

PrrMel lAai Key 22Q 2324. Mon-Fn 
7 50 Mat Wed 3.0 Sat 5.50 4 8 15. 
Student EJ 50 In advance. ROYAL 
5HAKESPEARL COMPANY in Willy 
kuiidl S new coaiedv EDUCATING RITA 


MAYFAIR. S CC 629 303*. 
B.O. Frl & Sat 6 


7.45 am- : 

uwmr Or: 

BESto. i ins'. tS. a? nsr -_l~- 

T.EKj'imi. LuWbUmj . FORTUNE- 836 2238- CC 2L'o°?oaT 7 t - 

I Hy^Thtornp-^^EAR AND^LOATI^ 

6 Dm Pub BNCO. 


8795. WM T.M ohl J*mf***S* stai,, callow * Patrick Rjecar 

Sr* sy S^a E x 

Ludml«»- Dvorak: Symphony Np 7. ^ HO- Tct. 930 *7*0. 

“ U ^»fib‘i6«»'» ,0, ThurS T.O0'Bm. JdiJKirtlni* • FORTUNE. 836 2238- CC 


18 No. 4 - 

■miii rvsBQ THEATRC in Raymond 

“SSalta^ Amiran »» BMW, | ^ease' WE’RE "britTsiT' owned ^ 
jmt s o to ft p hv Bob SherirAfl WPM ip J * 1 n rsrexi d u|m Bp^ OyI ler 57s 

fa l n A B M. at 7 S0 - BOOk ! £gtf. TOit W bSS?<ui» 830 0731. 

now D T-4J7 266' - ... 


- i Wi VtS ■Mitt* 

^riB OF* THE LONGEST - RUNNING 
T COMEDY .IN THE WORLD- NO SW 


Derrm Nesbitt. Carole Mowlam '" THE 
BUSINESS OF MURDER. SECOND 

, GR EAT Y EAH. 

MERMAID TH.. MKkirbn.' |C4 | 236 
5S68. CC 236 5324. ROUE 1ST HARDY. 
SIAN PHILLIPS OEAR LIAR. Een B.O. 
Sat 615 A 8.30. Half prKe mats Weds 
at 3.0. Group Hl« Box OKitc pi -379 
COST pre-t»ieatre_ simper Irom b. 

NATToNAL “THEATRE, 's t 92« 2252 
OLIVIER ttopen staaei Ton t loraw 5 30 
■then chMv 8 more peris— must end 
June i THE OREST El A , « «% 

I please be prompt lor 5.30 4 *"r l— — 

reflret farr-camcrf <nisil *urw tn 

LYTTELTON » proscenium UWM Tm I 
7 4S Tomor 3 00 4 7.45 THE SECOND 
MU TANWERAY bv Arm* w Pinero. 
COTTE5LOE ipmmll '“S 

price IHji Last oeris TRUK WftT, bv 
5am Shepard T**‘t M 0 * 1 ^ uc t. ' 4 L 0 

Tomor 2.30 A 7 30 then May 28. >9 

Car oark. Restaurant 928 2633. Credit 
earn bkpi 928 5933- t< 

NT alto at HER MAJESTY'S. 


PRINCE EDWARD. Tim Rice and Andrew 
nato-Wnnarr s CVITa. Dim ted os 
Mai Old Prince, kvps 8 60 Mil Tl.ur 
■ econumv pricri one Sat 3.00 Evg m-rr 
ruai 10 lb. 5 Co* Oll.ce 157 6 877 CC 
Hollim- 4 39 U499 Group ulet 373 6061 
01 Bo* On.ce. For intrant 24-nr brgs 
ring T*-fe<(afa 01-200 0200. 

PRINCE OF WALES THEATRE. 9 30 
81.31 CC Hon 1 no 930 0846 Or TclMara 
01-700 0200 124-frr bio* 1 or boofcmh 
on -.-filr, ROY KUDD CHRISTOPHER 
TIMOTHY in UNDERNEATH THE 
ARCHES. A mulieal or Ihe FlinSMn 8 
Allen story Evas Mon-Thun 7.30. Fr 
A Sal .■( 5. IS 6 8-30, Group sale. Bpa 
OHIO.' 01-379 6061. 

QUEEN'S. S CC 01-734 11B6 439 34 49- 
4031. Group sales 01-379 6061. Even- 
iims B 00- MSI Wed 3 Sat S IS and 
8.30 ANOTHER COUNTRY bv Julian 
Mitchell. 

RAYMOND RCYUEBAR. CC 01-734 1593 
At 7.00. 9.00 and 11,00 pm Ones 
Suns PAUL _ RAYMOND presents THE 
FESTIVAL OF 


ST MARTIN'S. CC B56 1443. Evp* 8 
Tuesoav Mai 2 45 5aturda«t LAB 
Agarba Chr.-tiF : THE MOUSETRAP. . 
World's lanorst-rver ion 30m Year. 

STRAND.’ CC 836 2CC.D-4I43 RALPH 

RICHAROSON JOAN GREENWOOD id 
THE UNDERSTANDING. A new Slav Bv 
Anuela Hulh Evey Mon-5at 8 om M;r 
Sat at 5 pit G. onp sales Bo* OffKe 
3796061. 

TALK DF THE TOWN. CC 01 734 5061. : 
for ret.Kvai.ont or on earn. London's 
Grrttetr Nlp'.t Dot from Inn S hours - 
Of Top Euler Uurnienl. THE Talk Of THE ; 
TOWN GALA GALAXY .REVUE 1 ? 30i 
wirn 1 cast of !S. JULIE ROGERS 
<11 pihi D.nnei, Dan.’dl9. 3 banisi. ■ 
FROM MONDAY. JOE LONGTHORNE. ’ 

VAUDEVILLE. CC 01-B36 99U Ewi 8 
Wed mats 2 46 54»‘- 5*8 GORDON ' 
JACKSON ir. AC.ATHA CHRISTIES 
; CARDS ON THE TABLE. 

: VICTORIA PALACE- CC 01-834 1317-8. 

01 828 J73S-*. DENNIS WATERMAN. 
ANTON POOGfR-J Tn* New Muiual 
WINDY CITY aasea on in* pla. The • 

r rui.t Page D.r.-*ied e» Prlrr Wood 

Previews hum jul. 9 OPENS JULY 21 
I a J 7 DO sun n.u!<:i, at 7 30 pm. Mat 
^ Wed & Sat 3 06 om 

i VICTORIA PALACE. CC 01-634 1317-8 
• 61-828 4735 L. Evil 7 3D Mat* Weo 

& Sal ai 2.30 Luoiled number ol «oed 
SHIS avail this weak. ELIZABETH 

; TAYLOR in THE LITTLE FOXES 0. 
LILLIAN HELLMAN. Credit cards 

ar crated Ctoup .ales 01-379 6061. 
MUST END JULY 3. 


EROTICA. 

ROYAL COURT. S CC 730 174S Eves 
8 0 Sat Mat 4-0. Mon Evq* i Sa> 
Mac a II 1 tan U MOT QUITE JERU- 
SALEM Bv Paul K ember. _ 

ROYAL COURT THEATRE UPSTAIRS 710 
2554. BAZAAR a RUMMAGE Or Sun 
Towiiacnd. 6*91 7 30. 

SAVOY. 5 01-836. 8888 . CC 930 0731 
Cvrnlng- 7-45 Mats Wed 2 30 Sal* 
S 0 8.30. MICHAEL FRAYN'S NEW 

COMEDY NOISES OFF, Directed B> 
MICHAEL BLAKEMOKE. 


i WESTMINSTER CC SS4 0283 HANNAH 
> GORDON. GWEN WATFORD. PAUL 
I 04 NEMAN in THE JEWELLERS SHOP 
J bv Pone Jonn Paul l». Red prut p.evs .- 
From Mav 17 Eves 7 4S Man W*C A 
Sal 2 30. . ; 

WHITEHALL. 839 6975. -938 BO 1 2 -7765. 
CC 930 CC9J-4. JOHN WELLS .n . 

ANYONE FOR DEMIST Mon-Sal 8.15 om ! 
5a: mat S inn. ■student st jnc.bc ES 50 ; 

1 hr Delore oerl MOrvSaJ niat MAY 17 - 
ONLY PERF COMMENCES 9.00 PM. 
MUST END MAY 22. LAST WEEKS.. 

WYNOHAM 5. S CC OX 3028 CC WO 
65CS- Grr> reductions 9S6 79&2 Mon- | 
Fr> 7-30 Sat 4 50 & 8 00 Wad nut , 

2 30 Retord UK 1 en lo» #.r- MU**' 1 
hia, Musi end Juiv 31 COLIN 
BLAKELEY. ROSEMARY HARRIS .n ; 
ARTHUR MILLER'S ALL MY SONS. ; 

I Directed Dt Mrtnarl Blaitrniorc. 

! YOUNG VIC 1 Waterloo' 928 6563 Evk I 
7. 38. Sat 2 50. Til! r4av 22 ROMEO 1 
AND JULIET. Sean £2.30 (Parties , 
; £1.75*. I 


F.T. CROSSWORD 
PUZZLE No. 4,871 

ACROSS 

1 Cowardice making ihe Ger- 
man late (8) 

5 Foolish way up I'd to follow 
(6) 

9 Instrument io right a de- 
baucher iS) 

10 Forked coat senior airman 
reiurned (6) 

12 Type of security needed lo 
live in a set of grinders (9) 

13 That which circulates 

warmth without resistance 

(3) 

14 Lean against a lax^e cask 

(4) 

16 Military artisan has one in 
support (7j 

19 Implore to accept a note 
that’s foided (7 > 

21 The solidity of a substance 
(4) 

24 A figure of speech from 
drunken roper taj 

25 Cheat people in a relation- 
ship f9) 

27 Interferometer used by a 
learner in school (6) 

28 Call a mean, grovelling crea- 
ture. with a skin disease (8) 

29 One way to current conten- 
tion (6) 

39 Ray .finishes, and on these is 
destitute (4*4) 

-DOWN 

1 Share a watershed, it’s great 
in America ! (6) 

2 Haughty shoemaker gets by 
... ( 6 ) 

3 ... and a mother gets in 
violently (5) 

4 Rascal in delirium tremens 
is appearing in rep (7) 

6 Words used by the super- 
stitious for tinder (9) 

7 Playing cards with old 



people, but bundled (8) 

8 Slow putting that expands 
lo your head (8) 

II Skip a year? (4) 

15 Gambler getting awav 
richer (6.3) 

17 Piek out a smaller quantity 
that’s pure (8) 

18 Courteous girl making her 
first appearance on radio (8) 

20 Cut off a wharf (4) 

21 Seize smoker, one with a 
drone (7) 

22 First-class collection of 
animals to the north, con- 
taining something akin to 
goosefoots (6) 

23 Article I sum up in hostility 
(8) 


26 A learner with adheii 
wood (5) 

Solution to Puzzle No. 






Financial Times Friday vMay 14.-1982 .- 


FINAJSOALTIMES 


POLITICS TODAY 


BRACKEN.HOUSE,. CANNON STREET, LONDON EC4P 4BY 
Telegrams: Finantimo, London PS4.Telex: SS54S71 
Telephone: 01-248 30d0 


The inner and the outer 


Friday May 14 19S2 


Looming c 
in Brussels 


crisis 


By Malcolm Rutherford 


FOR MANY years. British 
governments have been asking 
rheir partners Id the European 
Community either for reforms 
of the Common Agricultural 
Policy, so as to reduce wasteful 
expenditure on unsaleable sur- 
pluses, or for reforms in the 
budgetary rules, so as to protect 
Britain from having to pay the 
major share of the cost of these 
surpluses — or preferably both. 
In the so-called mandate docu- 
ment tabled just under a year 
ago, the Commission sketched 
out a broad ( if vague) pro- 
jrramrne of action on both 
fronts which seemed to offer 
some slight hope that a long- 
running dispute might at last be 
disposed of. 

This hope has come to 
nothing. The Community's 
agriculture ministers are poised 
to adapt a record increase in 
farm prices for this year, which 
will certainly add substantially 
to the costs of the policy, but 
virtually nothing is to be done 


Crisis point 

Until now the UK has made 
final agreement conditional on 
a satisfactory budgetary offset 
arrangement lasting for several 
years; but now it is being asked 
to accept a one-year offset, 
amounting to less than half its 
probable contribution to the 
budget, merely on the basis of 
an “understanding” that a 
longer-term deal, lasting for 
“several years/* would be 
negotiated by the end of the 
year. 

In effect, the other member 
states are forcing the issue to 
crisis point, by refusing to post- 
pone any longer the decision on 
farm prices. This is a political 
decision on their part: stopping 
the clock is a perfectly standard 
Community device, and in 1&78 
the farm prices were not fixed 
until June 22. The British 
Government’s dilemma over the 
appeal from Messrs Tindemans 
and Thorn falls into two parts: 
should it accept a one-year deal 
now. and hope for more con- 
structive negotiations on a long- 
term arrangement; and should it 
accept the rebate being offered 
for this year? If not, is it pre- 
pared to run the risk — some 
would say the near-certainly — 
of a major crisis in the Com- 
munity? 

Good, will 

Undoubtedly a long-term 
arrangement would be prefer- 
able. To rely on the good will 
of the other member states in 
another long-drawn-out wrangle, 
which might last for months or 


even years, is not an attractive 
option; and since the British 
Government has already re- 
jected the 800m Ecus being pro- 
posed for this year, it seems 
almost certain to reject it again. 
Even if, therefore, the Govern- 
ment were reluctantly to acqui- 
esce in a two-phase programme 
for the budgetary problem, the 
chances of avoiding a major 
Community crisis would depend 
on a significant, last-minute im- 
provement in the Community 
offer, perhaps at a meeting of 
foreign ministers which might 
be convened this weekend. 

The UK can of course, con- 
tinue to insist on the link be- 
tween this year's farm price 
increases and a satisfactory 
settlement of the budgetary' 
problem. That link was spelled 
out in last year’s Commission 
mandate, and was immediately 
endorsed by. of all people, the 
French. It is easy to see why 
other member states are 
impatient to introduce price in- 
creases. since many of them 
have faced serious protests from 
their farmers: but none oF them 
can have been in any doubt 
about the political link between 
the farm policy and the 
budgetary problem. 


T HERE IS another crisis, 
Sapart from the Falklands. 
The Argument over the 
British contribution to 'the Euro- 
pean Community budget may be. 
finally coming to a head at the 
worst possible time. 

The Foreign Ministers of the 
Community are due to meet to 
discuss the matter at the week- 
end. The Farm Ministers are 
scheduled to discuss the inti- 
mately related question of this 
I year's farm price increases on 
Monday. At present, it seems 
likely that Britain will veto the 
increases unless there is prior 
agreement on the British con- 
tribution to the budget and on 
the reform of the common agri- 
cultural policy. 

The veto would place Britain 
I at odds with tlw Community to 
an unusual degree, even given 
the fairly stormy relationship 
with Europe so far. There 
would also be an element of 
the bizarre. For example, if 
the British Government blocks 
the price increases, some of the 
member states might resort to 
“ national measures " : that 
means subsidising agriculture 
out of national rather Commu- 
nity resources. Britain might 
then oppose that on the grounds 
that it is against the rules. Yet 
resort to national measures 
would be one of the best ways 
of undermining a common agri- 
cultural policy which is inimical 
to Britain. 


BBC chief hits back as controversy on reporting nvr>/* — ... ■ 

jimC critics 

JE a ggieI 


PYMJTTflCKS BBG | 




, , +** 


EW. 




JtPs 

— K ft c* — 

Under attack: BBC chairman George Howard (left) and Alssdair Milne, director-general designate 
U.n VAAfl U 11 JTlr.D \ i rpc an* talk directly sivine wav entirely. the Defence Secretary, Mr Cecil 


jflgStv3i55!7 


target practice has been the 
BBC. There are some Ministers 
who are now distinctly 
embarrassed that the attacks on 
the British Broadcasting 
Corporation have gone so far, 
but in 1 general the Tories and. 
the BBC do not get on. The 
Panorama programme last Mon- 
day evening . which showed 
MPs — Tory and: Labour— whose 
views were quite unrepresen- 
tative of their parties was only 
the most conspicuous example 
of what many Tories think is 
bias or at least: excessive, even- 
handedness-. .-•••.• 

It seems to me that this kind 
of problem is inevitable given 
the nature of the BBC and 
indeed -has- arisen before under 
Labour 1 " Governments — Sir 
Harold 'Wilson never seemed 
much to trust it. The difficulty 
is that it- is not clear how far 
the Corporation is meant to be 
independent and bow far it is 
meant to defer to the Govern- 
ment of the day. By its very 
name it sounds like an official- 
institution and governments 
have frequently sought to 
influence at least the World 
Service: for instance* by step- 
ping up broadcasts to 
Afghanistan. ... 

One would have thought that 
the obvious' answer— especially 
for an administration of Mrs 
Thatcher’s hue — -would be to 
privatise it. As several 
Ministers have -pointed out, 
there have been few com- 


JJnaninuty 

If the UK maintains a veto 
on the adoption -of new farm 
prices, when the Agricultural 
Ministers meet on Monday, it -is 
unlikely lu be out-voted by a 
majority of the other members, 
since several of them would be 
deeply disturbed at such a pre- 
cedent. The Treaty does, of 
course, contain provision for 
majority voting, but ever since 
the 1966 Luxembourg disagree- 
ment. unanimity has 'been the 
almost universal practice. If i 
the UK does continue to -block . 
the introduction of farm price 
increases, same states, starting 
with France, have indicated that i 
tliev might introduce equivalent | 
national measures of their own. ; 
pending a Community agree- 
ment. 

In the midst of the Argentine 
crisis, there is a case for saying 
that Britain should appease its 
European partners. There is a 
contrary case lor saying that the 
time has come to precipitate the 
crisis over the CAP: if the 
other members refuse to reform 
it. then they must either pay for 
it or preside over its disinte- 
gration. On balance. Britain 
should accept a one-year interim 
deal— but only if that deal is 
on a scale to justify reasonable 
confidence about the Com- 
munity’s intentions for the 
longer terms. 


Another factor is 
lack of confidence 
in Thorn’s ability 


term solution has not been Buenos Aires and talk directly en ^i y ' r u g f re t^nse P^-Janson^^h^paxtv .chairman, privatise it. As' sevi 

Tb e'r^are^eTC rai Versions 'of JunTa™ preferably Jmwpujed. g™ White^w ^^have^beeT'fw c 

Has ssssk-ss SS&ffsKsi 

5 SXV S£' 2F3tSi&35 , i?£ were ' 10 ^ T^obYiom answer 

t0 

privatise the BBC 


A catalyi 
South Ai 


MR P. W. BOTHA'S think-tank 
for constitutional reform in 
South Africa, the constitution 
committee of the President's 
Council, has produced pro- 
posals which are both exceed- 
ingly cautious and startlingly 
radical. They may not amount 
to a blueprint fur the future, 
but they could prove to be an. 
important catalyst for change. 

In the eyes of virtually every- 
one outside South Africa's 
white minority, the plan tu 
bring three racial groups — 
whites, coloured people cot' 
mixed race) and Indian — into 
one parliament falls far short 
of the need to enfranchise the 
overwhelming black majority. 

In the context of debate 
within South Africa's ruling 
National Parly, however, a plan 
which envisages non-white 
ministers in the Cabinet is a 
major departure from the rigid 
orthodoxy of exclusive white 
rule. 

Perhaps mure important stiJJ, 
the plan proposes what might be 
termed the " Gaul list option ” 
— for an executive president 
with sweeping powers, and an 
extended seven-year term of 
office — as a means of pushing 
through further reforms m that 
divided country. 


option goes way beyond the 
constitution operated by Presi- 
dent de Gaulle and his* succes- 
sors in France. 

In the first place, it is 
proposed that the president 
should be indirectly elected, by 
an electoral college, rather than 
directly by the general electo- 
rate. Second, the proposals as 
they stand do not include any 
restraint whatsoever upon his 
powers; he would be a dictator 
in all but name. 


As far as one can detect, 
neither Ministers nor officials 
see any direct linkage between 
farm prices and the Com- 
munity's approach to the Falk- 
lands crisis. Community sanc- 
tions on Argentina are likely to 
be renewed at the weekend. But 
there is an uneasy feeling that, 
in the popular mind, the issues 
could come together. 

The problem is this. On 
May 30 1980 Britain reached 
agreement with the rest of the 
Community that the net British 
contribution to the budget was 
too high and ought to be re- 
duced. At the same time, it 
was agreed that the budget 
ought to be restructured so that 
less Community spending went 
on agriculture. 

There were interim arrange- 
ments for the British contribu- 
tion in 1980 and 1981 and — 
this is the important part — 
there was a provision that if 
a permanent solution had still 
not been found, there could be 
a similar arrangement for 1982. 

The complication is that the 
Brussels Commission, which is 
like the civil service of the 
Community, now appears to be 
offering a solution for 1982 
which would be the end of the 
matter. Britain is not yet 
ready to accept an interim 
solution, but also draws a 
crucial distinction between 
accepting an arrangement for 
1982 — as outlined in the 1980 
agreement — because the long- 


~«iii sss™ 

posals for a onc&And-for-ati No doubt with the wisdom of earlier and more fully, the shift , in the. balance of power, 
solution, immediately offered hindsight, there is a feeling Junta might have been cajoled True, the Cabinet approved the 
Britain rawm tor lass ana among Ministers that Britain into acceptance. Peruvian plan, but only on cer- 

inat would oe tne enc i or moved late in offering its very Still, all that is water under tain conditions. The negoria- 

Another is that oe offered tne substantial concessions. It was the bridge. . The. Haig-Pym tions at the UN must not be 
of *®oom for l.tw not unt |j ] ast Friday, after the mission to Buenos Aires is, allowed to drag on indefinitely, 
or £800m spread over mree Peruvian initiative had broken sadly, unlikely to take place. In the full Cabinet Mrs 

years. Anyway, the word got down, that Mr Pym went public The overwhelming belief of the Thatcher is more in command, 

round that Britain was begin- . .It would be wrong to suggest 

ning to bite. “ 1 " that there Is anything like a 

denies ^tMsi^’Tbe^word Wa” Britain has climbed down not only on ‘J*S 

Britain is still seeking a long- • . T'x Prime Minister than to Mr Pym. 


Bn tain is still seeiang a long- • . T'x Pnme Minister than to Mr pym. 

term solution to its budgetary SOVCrClfillty, Dili 3lSO OH itS ClcUTH 10 R believes that it has deman- 
problem and the refonn of the . J . . . . strated its peace credentials, is 

ing^The near-ultimate^ weapon- a part in an interim administration. BrS?WB?S tfUS 
increase. or the fam pnee j t ^d to cede more than as seeking peace at any price. 

PAtPi* Walker the Minis- * . - . . • t There . is :aIso . quite a strong 

that without giving way entirely. 

veto will be used if necessary- 


suspicious of the Foreign Office 
as seeking peace at any price. 

■There, is -:also. quite a strong 
belief that if negotiations come 
to naught and Britain goes in 
in force, all the old oBets ot 


vcu> win uc uam IX IISVCMB1J. . enmnmmico chnntri he fnr- 

Meanwhile, it is up to Foreign < on .the sort of minimum terms Cabinet Is that if. the UN .Rritaln Aril! hrtd- and 

Ministers and their officials to- the Government was ready to' negotiations' break - down. 5 -or fJJJJfnUt e? "the Falklands fnr 
try to sort matters out at the accept. even drag on much longer, there JJJi” Iq % orne. Thus the 

weekend. The Farm Ministers’ One particular passage in his will be no alternative to further cabinet ^ worries verv little 

meeting on Monday could, of spe eeh to the House is worth military action. . abotrt the- roiSnaftwn the Tary 

course, be postponed for a re-reading: “Appointment of a ^ , 22 ? S filwSh 

while. It is also worth remem- small group of countries accept- The. decision to approve the eno „u itself There is indeed 

bering that the Foreign Office able to both sides who would Peruvian peace terms was taken almost im iinspdken alSance 

is not the most popular of supervise withdrawal, undertake by the Cabinet as a whole 'and 


is not the most popular of supervise withdrawal, undertake by the Cabinet as a whole and betvveen the ne \y meritocratic 

departments with the present the interim administration in it was clearly several days in ^ Government and 

British Government Another consultation with the islanders' before the Conservative Party oW imperialist right on the 
factor is the almost total lack elected representatives, and per- m general realised how far the benches, 

of confidence in the abilYy of haps help in negotiations for a Government had gone. Taeti- r^ e real Dro blem for the 


ot confidence in tne anu\y oi naps neip in negotiations ior a uuvciumcm »i««i ^ reaJ prob iem for the 

M Gaston Thom, the .President definitive agreement on the was a *2 te ?l 0 T e Cabinet would come if Argen- 

of the Commission, to run the status of the islands, without Mrs Thatchers part it looks -Hna decided to accept the terms 


tina decided to accept the terms 
offered. The Government would 


-- — -- — - — — - , - . . _ ■ _L 1.1.. epneo it uiia ucluicu iu 

Community's institutions. -preiudice to our principles or atmsn— in tne sense unu u The Government would 

* * * to the wishes of the islanders.” shows how desperately the agree though not without mis- 

There is one possible further in other words, Britain had Government wanted -a- settlement dyings, it is not prepared to 
peace initiative if the negotia- climbed down not only on — "J « “ ‘ al f° .. wa it much longer, 

tions at the United Nations sovereignty, but also on its claim -At the .start of the crtsre, tne ^ + 

over the Falklands break down, to have a part in an interim Pnme Minister operated largely . • Fnr ^_ 


Mr -Francis Pym. the Foreign administration. It would be hard thro ^ gh . “ inner cabtaet com --r-- pr - ’ h iele’ "for 

Secretary, could offer to go to to cede more than that without posed of Mr Pym. Mr John Nott, O , the o 


Foreign 


parable ■ complaints about the 
coverage of the Falklands dis- 
pute by Independent Television 
News. Going -commercial does 
not necessarily lead to bias. 
Privatisation would also free 
those - . who work for the 
Corporation' from . these 
repeated arguments about 
responsibility to the Govern- 
ment and whatever may be the 
national interest. Not least, it 
would free the Government 
from the periodic headache of 
what , to do about the licence 
fee. 

There is something faintly 
nauseating . about the self- 
righteous way in which the BBC 
tries to. defend itself an<T, even 
more so, about the way- out- 
siders defend it: “Best television 
fn •' iherfcbrtdT -and^so oh:-- 

It may be true that the British 
are good at television, just as 
they are good at (say) theatre. 
The fact is that some television 
programmes are good and some 
bad. just like some articles. But 
it has nothing to do. with the 
BBC. The success of commercial 
television over the years has 
shows' that' it is possible to main- 
tain standards without a quasi- 
official corporation. That way 
the political disputes could be 
avoided. 

There is. however. • small 
chance of change. The most 
that Ministers will say is that 
the coming of satellite and cable 
,TV will make the BBC rather 
less important. In that they take 
some pleasure. 


Men & Matters 


BL’s bliss 


Divide 


Questions 


The document which has been 
submitted for debate — first in 
the t purely advisory) Presi- 
dent’s Council, and then in the 
National Party, whose response 
will be critical — begs almost as 
many questions as it answers. 

Even in this preliminary form, 
however, it has been rejected 
out of hand by the utira- 
conseryatives of Afrikanerdom, 
including the breakaway wing 
of the National Party led by Dr 
Andries Treumicht. Indeed, 
more members of the ruling 
party may well quit over its 
contents, if Mr Botha adopts 
them. 

It is because of this very* 
threat of die-hard opposition to 
Oven the most modest attempts 
at racial reform that the 
reformists, the so-called ver- 
ligtes, are pushing the concept 
of a supremely powerful presi- 
dent. 

The concept would also suit 
those, such as the South African 
military establishment close to 
Mr Botha, who believe that the 
state needs yet more authority 
to face the threat of rising 
black dissect. Yet. as it has 
hcen proposed, this Gauli'tst 


Apart from the lack of 
rotraiats upon the president, 
the proposals fail to spell out 
in any detail how the proposed 
multi-raci ai legislature would 
work. AH tile indications are 
that it would maintain a built- 
in white majority, large enough 
even to outweigh the danger of 
Coloureds and Indians joining 
forces with white liberals to out- 
vote the National Party. Sug- 
gestions of equal political rights 
for the three groups are obvi- 
ously premature. 

A further weakness is that in 
seeking to straddle the growing 
divide within the ranks of Afn- 
kauerdom, they fail to answer 
the aspirations of anyone out- 
side it. Mr Botha cannot count 
on automatic support from the 
most prominent leaders of ihe 
Coloured and India communi- 
ties, nor from the Progressive 
Federal Party, the white liberal 
opposition. 

If he finds that he cannot 
even carry his own party, Mr 
Botha can still distance himself 
from the plan. But . if he 
abandons it in 'this way. he will 
be in danger of abandoning all 
his promises of cautious reform 
— and with diem the tacit sup- 
port he has won m Washington 
and the West. 

One should not forget that 
tile latest proposals, in bringing 
representatives of the coloured 
people back into parliament, are 
only returning South Africa to 
the position of nearly 30 years 
ago. when the National Party 
stripped them of their franchise. 
The plan indicates both the 
extent and change within the 
ruling party, but also the time 
it has taken to think again; 

Mr Butka . must eventually 
face up to the fact that he .does- 
not have another 30 'years to 
extend the franchise to the 
black 70 dot cent of the popula- 
tion. 


Sir Michael Edwardes resisted 
some pressure from share- 
holders at yesterday's annual 
meeting for him to stay on as 
chairman after the end of this 
year. 

He confided: "I have enjoyed 
nothing .as much in my life as 
the. last four and a half years. 
But there -is no doubt that the 
currericy diminishes in value 
and I think it would be counter- 
productive for me to be here 
beyond the end of this year.” 

Enjoyable? Surely there must 
have been times when Edwardes 
wished- he could have skipped 
the annual meeting so he would 
not have to face some of the 
rather strange people -who turn 
up from among the 80,000 BL 
shareholders still left.' 

Yesterday we saw a good 
cross-section. There was the 
man who suggested that BL 
should bring back the starting 
handle for its cars and get rid 
of the one 12 -volt battery and 
replace -ft with four six-volt 
units. (As. you might have 
guessed he was also a share- 
holder in Chloride. Edwardes 
former company.) . 

Another attempted to get the 
board interested in a scheme 
to promote BL Cars on the 
costumes of drum majorettes at 
the World Cup matches— "as 
you will understand I need a 
quick decision,” he explained. 

And Edwardes will certainly 
be happy that he will hot have 
to cross swords again with his 
doughty adversary, Noel 
Falconer from the unhappily- 
named BLISS- (BL Individual 
Shareholders Society). 

An engineer and economist 
with 8.620 BL "shares. Falconer 
and a small band of supporters 
are cross- with Edwardes mainly 
because he persuaded the 
Government -ta take shares for 
the £990m it injected into BL 
and thus reduced substantially 
the value of the existing equity. 

And he wants an independent 
review of the BL corporate plan 


to see if it really is working. 
Falconer has a whole string of 
statistics which imply it isn't — 
as well as a nice turn of phrase 
to bring the figures to life. 

For example, yesterday he 
pointed out lhat BL's losses 
since Edwardts took over as 
chairman amounted to nearly 
£1.5bn. He put this into per- 
spective by saying: “This 
represents one pound for every 
represents £1 for every 
minute since Jesus Christ was 
crucified.” 


Paper weight 


Unless you are very curious 
or very steamed up about the 
nuclear power programme you 
would be well advised ont to 
ask the Cen trad Electricity 
Generating Board for lhe docu- 
ments supporting its case for 
a new nuclear power station at 
Sizewell, Suffolk.-- They weigh 
24 cwt and. will cost you 
£250 a set unless you are 
among a small number on the 
free list. 

The board is treading a tight- 
rope between being careful with 
the taxpayer’s money and being 
fair to the 'manifold interests 
ranging from worthy to crack- 
pot which would like to have 
the papers. I understand it is 
erring on the side of generosity 
towards the most implacable 
opponents to the power station 
to make sure that “primary 
objectors " get free copies. 

Objectors may yet protest that 
the massive documentation is an 
offensive weapon -in the board’s 
hands. A cartoon in the forth- 
coming issue of the board's 
newspaper Power News advises 
CEGB officers, “and if all else 
fails you can always hit ’em 
with it.” 


in the annual Commons ballot 
for Private Members’ Bills and 
wondered aloud what to do with 
it. wise heads at Westminster 
urged him to consult -fellow 
Labour backbencher Leo Abse. 

The result is the Forfeiture 
Bill, due for its third reading 
in the Commons today and 
likely to confirm Abse's record 
as the most successful back- 
bencher this century In piloting 
Bills through Parliament. 

Suggested by Abse and 
steered by him through the 
political and procedural pitfalls 
which beset this type of le^da- 
tion, the measure would give 
the courts discretion to allow 
people to inherit from those 
whose deaths they have caused. 
A battered wife who kills a 
drunken husband in a struggle, 
for example. 

If the Bill goes through, it 
wHI be the ninth' that the 
diminutive solicitor with a taste 
for enegantiy-embroidered waist- 
coats has put on the statute 
book. 

Either as chief promoter or 
leading co-sponsor, Abse's enact- 
ments during his 24 years as 
MP for Pontypool include 
measures on divorce, homo- 
sexual offences, family planning, 
legitimacy, widows* damages, 
disabilities and industrial 
injuries. 


from Nicaragua in . a private 
plane, supposedly for medical 
treatment, and he flew out of 
the country again. 

If it was Vesco— and the 
Costa Ricans are adamant that 
it was — the man who. has been 
called the “Flying Dutchman of 
the finan cial world” must once 
again be roaming, the seas for 
a safe haven. 

After the IOS scandal was 
uncovered, Vesco-. went to Costa 
Rica at the invitation of the 
government to engage in finan- 
cing for local industry and 
agriculture. But a new Costa 
Rican President elected m 1978 
was -less hospitable and refused 
to let him return from a foreign 
trip. So he went to the Bahamas 
instead where they let him stay 
for two years.- The U.S. tried 
unsuccessfully to extradite him 
from both Casta Rica and the 
Bahamas. 

Since 1980 be has had no fixed 
abode, but has been sighted 
touring the Caribbean in private 
boats and planes, suffering some 
physical discomfort possibly, but 
not, it seems, a lack of cash. 

Now 48, Vesco has claimed 
that the U.S. authorities are try- 
ing to persecute him for his 
political opinions. Apart from 
the IOS charges, he has been 
accused of making illegal con- 
tributions to President Nixon's 
election campaign in 1972. 


Long running 


Had the Costa Rican authorities 
held on to the man they sus- 
pected of being Robert L. Vesco, 
the fugitive financier of IOS 
fame, this week, their, timing 
would have been rather neat. 


Top billing 


When Kettering MP Bill Home- 
wood won a place last autumn 


It is exactly 10 years since 
-the- Securities and Exchange 
Commission filed a massive suit 
against Vesco accusing him. and 
dozens of others of milking the 
IOS Mutual Fund of $224m. But 
for reasons that are still not 
clear, neither the Costa Rican 
nor U.S. governments . detained 
the man who had flown over 


Beam ends 

An Andorran story that shows 
there is more to these good 
folk than sometimes meets the 
eye. A native of that Pyrenean 
outpost turned up for work at 
a building sites. “ Do you,” 
asked a doubting foreman, 
“know the difference between 
a joist and a girder? ” 

“Of course, l do,” replied 
the' Andorran proudly. “ I'm not 
ignorant. The first wrote 
Ulysses and the other wrote 
Foust.” 


Observer 


What 


seal 




And did you take Ms. wunl tot K? Or 1 
doyoii have an elective metnodoIcfiEEkinB 
out flu securir/ start you employ? '■ - 

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one d the b«t. W 

Once selected lIwywdl.underiiotnWI^irBWiiMdto baths } 

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ctiecic for patents! icamty risks, Graup 4 State Otters or 

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Waiting for an act of will 



V.REN Mis Thatcher, meets 
President Mitterrand In London 
«n Monday the Falklaiuls teem 
renam to dominate the di&uv. 
smns. But another topic much 
nearer home— a . fixed lint 
acrn!»s the Channel— car. ai.-o be 
pxpccird to claim :ome nf the 
leaders' attention In fact, if 
it had not been for the Falk- 
lands crisis, the two might have 
used the summit to announce 
the go-ahead for a . cross- 
Channel .scheme. 

Despite claims by MPs in Jiu: 
House of Commons this week 
lhai plans for a runnel— ir une 
of the more ambitious bridge/ 
funnel schemes— are "dead 
ducks" and “ white elephants," 
ihe enthusiasm or Hie French 
and some British politicians 
means that an idea which goes 
back to Napoleonic limes j? siif] 
very much, alive. 

At the end of April, the 
report of a join: Anglo-French 
working party of officials on 
the i ethnical and ecune#iic 
feasibility of Hie various 
schemes landed on the ric 4 ks of 
ministers in London and Paris. 
Their report broadly endorse', 
the viability or a link, without 
rpcnirnnemling any particular 
scheme. 

This document will form the 
basis on which ministers make 
l heir decision, and it -s thus 
considerably more important 
than n report by Sir Alec 
Caimcros.s. who was commis- 
sioned by the British Govern- 
ment over two years aj?o to look 
at Lhe Channel link. His report, 
published last month but com- 
pleted at the end of l£Wl. con- 
cluded that “there is r.o 
overwhelming case for a fixed 
!:nk." 

It has been seen as ammuni- 
tion for the British Government 
if it wonts to turn down the 
whole idea. But the French 
arc unlikely to view it ;ls more 
solid evidence than that pro- 
dured by the joint working 
party. 

The economies of a fixed link 
are ‘‘just about robust." accord- 
ing to Mr David Howell, Trans- 
port Secretary. But this does 
not necessarily mean that the 
project will be given the go- 
ahead. The big question that 
remains unanswered is whether 
the British, who pulled out nf 
the last scheme seven years ago 
after giving it the green light,, 
can find the necessary political 
will to try again. 

Large capital projects are not 


CB0SSIN6 THE CHANNEL: THREE LEADING OPTIONS 





Graftjm Lever 

1 — Link intocu rope's fi-lane motorway suspension bridge. 3— British and French Railways' 
“mousehole" single-track rail tunnel. 3— Euro Route’s road and rail bridge and tunnel 


loved ;.y the Th.A titer Govern- 
ment. Even 'i the private 
financing jdipukiiior. set bv this 
Government l'or ‘.he Channel 
link can be met, si is not the 
Mir: of schema which figures 
high in Mrs Thatcher's priori- 
ties Ncvr-rtfcetoss. it was with 
considerable en:hu>uuwni that 
she and PreMdent Mitterrand 
prunouticeil Iasi September, m 
the afterglow of ihe ‘■uivpis or 
their first formal meeting, that 
they were initiating a "rrcon- 
sideration” nf lhe Channel link. 

Lord Carrington. then 
Foreign Secretary, war. believed 
*» be much ir. favour of the 
idea, fcui his successor. Mr 
Francis Pya. has had iiiUr- or 
no time to come l» grips with 
>nc issue. Mr Howell would like 
to get a go-ahead, and it would 
do much for his political stand- 
ing if. he couid get the 
necessary support ;n Ctoinct. 

Bur titeri* are jwwcrful 
opponents, not only among the 
groups whose interests might 
be affected by a Channel link, 
such as the ferry operators and 
the Dover Dock* and Harbours 
Board, but also in the Treasury. 

Promoting groups formed to 
hack the various schemes which 
have been suggested since 
British Rail launched its com- 
paratively modest rail-only plan 
in 1979 naturally claim that 
their projects would give more 
than an adequate rate of 
return Cross-Channel traffic, in 
passengers and freight, boomed 
during the 1970s. and although 
growth in the 1980s looks to be 


less dramatic, it is conceivable 
that a Channel link could prove 
to bp the glittering prize so 
desperately wanted for the rail- 
ways by Sir Peter Porker. BR 
chairman. 

. If the Governments give the 
go-qhcad. however, the real test 
will be the willingness of the 
financial markets to put up the 
money. Capital cost estimates 
range from £"65m 1 1980 prices), 
plus 15 per cent for associated 
infrastructure, for the railways' 
scheme, to £1.3bn for the 
Eurornuie bridge and tunnel 
scheme proposed by a consor- 
tium which includes Gw British 
Steel Corporation. Hie latter 
says that 500.000 man years of 
work over five years wnuld be 
provided between Britain and 
France for this scheme. 

Merchant bankers advising 
the various groups arc broadly 
optimistic that the markets 
would be attracted to a Channel 
link but say they cannot be 
specific “until we know wlwt 
the rules are, and that depends 
on the Government making up 
its mind and telling us." At 
least two of the clearing banks 
have indicated an interest. 

Guarantee* could be the 
thorniest problem. The British 
are not prepared to give finan- 
cial gua ran lees that wnuld he a 
direct call on public spending 
(the French attitude seems 
more relaxed). But all the 
groups would want a political 
guarantee, particularly a com- 
mitment that once started the 


scheme would continue along 
wiijt change* m Government. 

As far as the rail lunnel is 
concerned, the Treasury is 
rlearly worried that the operat- 
ing company would want a con- 
tract with Ihe railways which 
offered a guarantee if traffic 
returns fell short uf projec- 
tions. BR has talked about 
guaranteeing about ?u per cent 
of pro icckd takings over Ihe 
first 10 years, falling to SQ-fiG 
per cent after that. This is un- 
likely to prove sufficient. 

A tunnel or bridge with a 
road a* well as a railway would 
be more expensive, but more 
flexible, and the guarantees 
question might therefore be 
easier to overcome. 

The more ambitious bridge 
and bridge/tunnel schemes 
raise additional questions since 
they are not proven in waters 
like, the Channel, with its 
densely used shipping lanes. 

Whatever scheme emerges as 
favourite, a rommilmoni by the 
Government lo a fixed Channel 
link would require more than 
a simple statement in Parlia- 
ment. Even if the scheme were 
to be privately financed, there 
would have to be considerable 
Government involvement in the 
legal, planning, and perhaps 
financial terms. 

Hazel Duffy 
Transport 
Correspondent 


France : strong 
backing for the 
tunnel option 


ONE OF France’s strongest 
long-term supporters of the 
Channel tunnel is today firmly 
ensconced in the " Koto! 
Matignon. the eiegani 
eighteenth century town house 
which lodges the French Prime 
Minister. 

Speaking of the 
earlier this vear. M Pierre 
Mauroy- made it dear that 
Pnme Ministerial office has not 
changed the ideas he formed 
as a northern politician znxious 
to promole growth on his home 
terrain. In his view, he said, a 
cross-Channel link anchored on 
France's northern coast line 
was a major development that 

would generate progress “for 
Europe, our country end the 
whole nf ihe Nord-Pas dc Calais 
region " 

Support from j nun who is 

bDih bead f>r the Government 
and a former President nf the 
regional council, hay given the 
Channel link project formidable 
political backing since the 
Socialist landslide List Mav. But 
it has also limited the French 
options, because M Mauroy 
made one crucial qualification 
to his backing. In line with ihe 
new Socialist policy of devolu- 
tion. the plan would have to 
involve the local regional 
authorities, he said. 

The northern Socialist and 
Communist councillor 4 — 102 out 
of a total of 1 OS— have duly 
hacked The Prime Minister and 
thrown their weight behind the 
project. But it i> a support of 
a very specific kind that has 
inevitably coloured the French 
attitude to the kind of lmk tint 
is acceptable. The region wants 
to see a relatively cautious, 

step-by-step development which 
will not bring violent change 
and which will yield guaranteed 
dividends to local industry. 

These demands mean support 
for a tunnel rather than a 

bridge, and for a limited project 
that will maintain the tradi- 
tional activity of the big cross- 
Channel ports. Behind this 
preference lies the fear that any 
of the mortf ambitious fixed link 
ideas could destroy the currently 
booming ferry traffic, and with 
it the one growth element in 
the local economy. 

Unemployment in the north. 


an area of worked-out mines 
and run-down heavy industry, 
now stands at 12 per cent. In 
pockets along the coast Line, 
however, it is as high as 16 per 
cent. A bridge, a road tunnel, 
or even a through train system, 
i; is argued, would simply by- 
pass these unemployment black- 
spo:s. generating growth 
elsewhere and condemning Die 
area io a further cycle of 
decline. 

To bacl: up these arguments, 
rhe council has drawn up 
employ meet forecasts which 
suegost the! tbc health of the 
region can only he assured by 
marrying the tusne! project 
with an ambitious development 
programme for the ports and 
coastline. 

The attitude of lhe northern 
council coincides to a large 
extent wiih the approach of the 
French authorities since ihp last 
Channel tunnei project was 
aborted, ct considerable cost to 
ihe French taxpayer, in 1&74. 

Former President Gj«card 
fi'EsTainp wa* enraged by the 
unilateral decision. When talks 
were restarted in 1977, the 
SNCF. lhe nationalised railway 
r:;inpany tod discussions for the 
French, decided to opt for a 
project that would not run into 
the sort nf opposition that killed 
the previous tunnel. 

The result of this strategy 
wp« the joint SNCF/British Rati 
plan for a single, pure rail tun- 
nei. This was moderately 
vosred. in order to meet British 
anxieties about financing, and 
was dehberateiy based on exist- 
ing rail links— lhe previous 
plan was partly undermined by 
British environmental opposi- 
tion to the proposed new fast 
rail line to London. 

The cost appears m present 
no particular problem to the 
French. An obvious solution, 
already advocated by :he SNCF. 
would bo :o finance Lhe capital 
costs from the company's 
normal investment budget, now 
running at around FFr 7.5bn a 
year. 

On ihss basis, the SN'CF'i half 
of tho project would cost around 
FFr 500m a year over ID years, 
just about the same as the ex- 
penditure on the new TGV fast 
line to Lyons. 

The main financial worry for 
the French appears to be the 
danger of a further unilateral 
guillotine on the project from 
perfidious Albion. M Mauroy 
will insist on strong guarantees 
against any such blood-letting. 

Terry Dodsworth 
in Paris 


Lombard 


How banks judge 
country risk 

By David Lascelles in New York 


THE GROUP OF THIRTY'S 
recent survey of the risks uf 
international lending came lo 
the rather predictable conclu- 
sion that banks think these risks 
are increasing, but that the 
rewards will probably go up 
too. 

One of the most revealing 
tables, however, had toss to do 
with why banks think these 
risks arc worsening than with 
why they lend abroad at all. It 
not only shows some interesting 
priorities but also contains what 
can only be described as a 
blatant untruth, olbeit an under- 
standable one (see fable). 

Asked what factors ranked as 
■•very important" in their 
decision to lend to foreign coun- 
tries. banks gave as their most 
frequent answer, the political 
and social conditions. The more 
predictable answer — economic 
data — ranked only second. This 
is the first survey the group of 
3it has done, so we cannot tell 
how' this order of priorities 
evolved. But it is a fair bet that 
only a year or two ago. " econo- 
mic data ” would have ranked 
first. This is, after all. the busi- 
ness of bankers and not 
diplomats. 

The banks’ mounting concern 
with political and social condi- 
tions is understandable given 
events like Poland. And doubt- 
less if the poll was repeated 
today, the shift would emerge 
even more strongly given the 
Falkland* crisis. 

The Group of 30‘s poll showed 
that the vast majority of banks 
<92 per cent) had increased the 
resources they devote to 
country risk analysis by taking 
on more staff, gathering more 
information and visiting 
borrowing countries. But given 
the many embarrassing situa- 
tions in which banks have been 
caught in the past few years, 
one wonders how effective all 
this is — and just how heavily 
country risk weighs in the 
balance when a profitable piece 
of business is at stake. 

Gauging a country's 
susceptibility to political or 
social upheaval is not the same 
thing as calculating the cash 
flow of a project being financed. 
Even so. many banks claim to 
be able to assign a political as 
well as a credit “rating'’ to a 
borrower using a scale of letters 
or numbers. 

This is surely a dangerous 
practice. It implies that 


countries can be pigeon-holed, 
according to some system 
which is probably designed as 
much to appease ihe bank's- 
board and shareholders as- 
express a judgment about a 
country's stability. Who could 
have predicted only two months 
ago that Argentina would so, 
suddenly be propelled to the 
brink of default? Certainly 
not the dozens of banks who 
were putting together ioans to 
Argentina just as the war broke 
out, and have sow been forced 
to put these loans on ice. 

But banks like to convey the 
impression that nothing clouds- 
their better judgment — even 
sometimes to the point of self- 
delusion. The fact that only Jo . 
per cent of the respondents to . 
the poll were honest enough to 
cite " lhe involvement of other 
hanks " os a factor in their lend- 
ing decisions is surely evidence 
of this. Bank? are nothing if 
not gregarious; they feel secure 
in each others' company, and- 
the}- like to fight for the same 
markets. What better way lo. 
justify joining a big interna- 
tional loan than to point to the 
participation of other big 
names? 

The Group of 30s report' 
which accompanied publication 
of the poll was closer lo the j 
mark when it said: “competi- 
tive pressures may lead banks • 
to override country risk assess- 
ments and engage in imprudent 
lending. Particularly in the 
early stages of country lending,' 
competitive behaviour tends to 
dominate. This can mean that ' 
new money will continue to pour 
into a country once it is 1 in 
vogue* even though signs of', 
economic difficulty may already 
be evident." 

And not only in the early 
stages. As the Teport points out, 
hanks were still dishing out new 
money to Peru. Turkey and 
Poland when these countries' 
difficulties were plain for ail - 
to see. 

FACTORS OF COUNTRY RISK ' 


Factors ranked as 

By percent ■ 
of all 

very important 

respondents 

Political and social 
conditions 

83 

Economic data 

80 

Judgment of country 
specialists 

64 

Key economic forecasts 
Involvement in other 

51 

banks 

15 


Letters to the Editor 

The Falklands: understanding the conflict 


From Mr It. Grafftey-Smith. 

Sir. — There is one principle 
in defence of which the nation 
and all the political parties have 
been united. No country has 
the right to lake by force the 
territory of another and the 
British Government deserves 
the support of its allies, its 
people and its media for that. 
It is. however, equally proper 
that wc should not allow a 
creeping amnesia to obliterate 
the background to this affair 
because this will play a funda- 
mental part in an eventual 
settlement and will in due 
course form the basis of the in- 
quiry which will inevitably fol- 
low on what went wTong. 

For 15 years we have been 
negotiating with Argentina over 
these islands. Nothing else has 
commanded so little public 
interest. Mr Ridley, whose plan 
emerged some months ago. has 
been noticeably missing from 
the nightly line up of political 
and military pundits conscripted 
to replace the dearth of visual 
material from the scenes of con- 
flict. Having accepted that Ihe 
inspiration of invasion was to 
divert attention from the disas- 
trous state to which ihe Argen- 
tinian dictators had brought 
i hem, it seems perfectly proper 
for British reporters collectively 
to report tile situation as it 
appears there, if only to indi- 
cate the continuing degree of 
mythology to which the ordinary 
Argentinian is subjected. 

We cannot both claim that 
they are a repressed people sub- 
jugated by cruel dictators, and 
at the same lime treat them os 
rieniorraiirally responsible tor 
lhe evils of the military aclivt- 
lies of their dictators. There is 
no freedom of press or TV in 
Argentina and to understand 

this, it is right to report the 
propaganda which the junta 
churning out. One has ool? to 
took at the shattering effect 
which the eventual truth had on 
ihe people of Germany once the 
war was over. 

We are not in a state of lota!, 
war. Too many other doctrines 
and plans have been espoused 
by our political masters in the 
past 15 years lor us all to be 
prepared to stand on our heads 
over the future of- the inhabi- 
tants of the Falklands. Unable 
to supply and protect, these 
dependancies over '8/100 -miles, 
a modus vivondi with their langc 
neighbour is essential. In tiic. 
search for that accommodation 
daily reported to us in the media 
it is important that the national, 
wiii is informed of the situation 
in every aspect. It may be 
irritating to politicians seeking 
to achieve a solution by military 


conflict — and. incidentally, par- 
take in local and by-eicclinns 
simultaneously — to have doubts 
or questions raised on their con- 
duct. But this is the nature of 
that sort of affair in a demo- 
cracy and it degrades this prin- 
ciple wbich we have all 
embraced, to have them carp 
about BBC reporting of all the 
news from tho scene. 

For nil those millions who 
find unfairness in the coverage, 
there must equally be millions 
more whose sieodfastncss is un- 
diminishcd by being able to see 
both sides of the coin. 

R. T. Grafftey-Smitii. 

Orchard House, 

Cemey Wick, 

Cirencester, Gtos. 

From Mr f. Mitchell. 

Sir, — Governments govern 
people, not land. The Argentine 
Government's right of 
sovereignty extends only as far 
as Argentine citizens, no 
further. 

T. C. N. Mitchell. 

7S Greenock Road, 

Lanjs. 

From Mr A. Kendall 
Sir,— At a time when national 
unity is of paramount impor- 
tance. not least to the brave 
men who arc risking their lives 
in the Falklands, it is sad to see 
public sector unions like the 
National Union of Public Em- 
ployees. (he Confederal ton of 
Health Service Employees and 
the National and Local Govern- 
ment Officers Association on 
strike and the Left-dominated 
civil service unions and the 
Associated Socicly of Locomo- 
tive Engineers and Firemen all 
threatening disruption. 

All this miJNt he very lien rim- 
ing to General Gnlticri and the 
Fascist junta. . When a natron 
appears divided a l home its 
enemies may well draw wrong 
and possibly tragic conclusions. 
Could we have a patriotic mora- 
torium on such action until the 
FaJfcmds affair is resolved? 

An thong Kendall. 

'J9, Salisbury Hoad, 

Godstonc. Surrey. 

From Mr R. Simmons 
Sir.— Samuel Brittan's huma- 
nist arguments (May 6) seem 
to pose more questions than 
they provide answers to the 
Christian dilemma. No one in 
his right mind relishes violence. 
The City of London has seemed 
to be in favour of law and order 
ever since it first obtained lhe 
right to appoint lhe Sheriff of 
Middlesex. Has Ihi* altitude 
significantly changed? If, as 
some politicians aver, demo- 
cracy means that the will of 


the majority should prevail 
should we not all be watching 
very closely the Republic of 
China? The fudging of consti- 
tutional boundaries to accom- 
modate one's definition of 
democracy is to play lhe 
Argentine’s game. If reversing 
history is acceptable pragma- 
tism. would Mr Britian like to 
consider what should >>e done 
wthe the 2m Chinese and 
Indians in Singapore? He should 
remember ihat the majority 
of Singapore citizens ovrr the 
age of 25 were formerly British 
subjects? Buying peace nt other 
people's expense may be the 
latter day practice in certain 
trade disputes, but this can 
hardly be claimed to set an 
ethical standard. 

One used to think of Britain 
as a place where political 
refugees, who were not crimi- 
nals might seek haven. For 
economic and political reasons 
this is no longer true. Many 
other countries have equivalent 
policies. If the Falkland 
Islanders " choose " to leave 
their homeland, where does Mr 
Britian think they should go? 
Is there an area in the United 
Kingdom equivalent to that in 
the Falkland Islands, stocked 
with as many sheep, which can 
be handed over to them? If 
the Islanders come here, may 
I hey not be compelled to join 
the queues of unemployed and 
be expected lo lake any farm 
labouring job which may be 
offered? Is not one's indepen- 
dence and self esteem an impor- 
tant part of one's standard of 
living? What price does Mr 
Brittan put on this? Is tins not 
the greater part of lhe British 
Government's obligation? 

Mr Brittan concludes that we 
should all agree that Argen- 
tinian withdrawal is the one 
condition for a permanent cease 
fire. Bui this is the one condi- 
tion which die junta will rwt 
and probably cannot accept. 
What then does Mr Brittan 
suggest shoitlri be done other 
than honour our undertaking? 
R. G. Simmons, 

GG, Central Avenue, Pinner, 
Middlesex. 

From Mr H. Benjamin 

Sir,— Doubtless Mr Brittaa en- 
joyed expressing his extra- 
mural views in " Stop the Killing 
Straight Away ” (May 6). 

If however he had prefaced 
these with the statement in his 
final paragraph . . . ** the Argen- 
tine withdrawal should be. the 
one condition of a permanent 
ceasefire . . .** we could have 
saved ourselves a lot of reading. 
H. Benjamin. 

.S' Ian hot’ Hall, 

Finn's Lynn, Norfolk. 


Merchant Shipping 
Bill 

F'rom the Director. 

British Federation of 
Commodity Associations 

Sir. — In his article " The 
worst of a bad job " .(April 29) 
Dr A. H. Hermann drew atten- 
tion to the shortcomings of the 
Merchant Shipping (Liner Con- 
ferences) Bill now in its second ; 
reading committee stage m the 
Commons. In particular Dr 
Hermann pointed out that the 
Bill which would enable the 
UK to accede to the United 
Nations liner code loaves far 
too much lo regulations made 
by the Secretary of State 
rather than defined in the Bill [ 
itself. 

Commercial lawyers in the 
City have expressed the view 
that the number of matters left 
to regulations is almost un- 
precedented in a Bill which 
itself deals with a United 
Nations code described by Dr 
Hermann as ■‘extremely vague 
and nebulous even in crucial 
provisions." One matter con- 
cerns the conditions for recog- 
nition as a UK shipping line 
for the purpose of the code 
which is not a subject which 
should be left to secondary 
legislation. 

Another important point not : 
dealt with in the Bill is the { 
protection of non-conference l 
ships which developing coun- ; 
fries might seek to exclude ■ 
from the trade once they have j 
secured their 40 per cent share ! 
of liner traffic. The Minister I 
indicated in the committee on j 
April 28, that tho exclusion of 
non-conference lines would not 
be a hreach of the code but 
that HMG would be prepared to 
use “ the very considerable \ 
powers which Parliament has 
provided ” to counter such a I 
situation. One would have 1 
thought that these powers j 
should br indicated more j 
specifically in the Bill. i 

One suspects that the Bill : 
leaves so much lo regulations ! 
because the Department of • 
Trade has not really thought i 
out lhe full implications of | 
acceding to the UN liner code i 
and is therefore unable at this 
stage to define many -important 
matters in the primary legisla- 
tion. 

Other EEC countries are cur- 
rently considering their own 
domestic legislation to imple- 
ment the code and will be look- 
ing to the UK as an example. 

It is a pity U could not be a 

better one- 

John II. Farr 

The British Federation of 

Commodity Associations 

PbmtfttioR House 

Mincing Lane EC3 


01-248 9166 

ONE SETOF FIGURES 
EVERY PENSION FUND 
SHOULD KNOWABOUT 

Itfs the telephone number of Barclays Investment Management 
limited, awholly-owned subsidiary of Barclays Bank Trust Company. 

We specialise in providing full investment management services 
to institutional and corporate clients and we are one of the leading 
- investment houses in Britain. Funds under managem ent exceed £2,000 
million of which £1,400 million consists of the inves tment portfolios 
we manage on behalf of company pension funds. 

As you would expect from the size of these figures and from 
our Barclays Group pedigree, Barclays Investment Management 
limited possesses the skills and resources needed to manag e your 
company’s pension fund-and to do it very well- whether yours is still 
a medium-sized company or a multi-national corporation. 

If you would like to know more, the man to talk to is 
Bill Hilling, Director and Investment Manager, Barclays Investment 
Management limited, Juxon House, 93 St Paul’s Churchyard, 

London EC4M 8EH. 



pension fund clients can expect to receive and the comprehensive 
administrative back-up that can be included in the package if required 
We think you’ll be impressed with his answers. 


BARCLAYS 










26 




Financial Times Friday May 14 1982,’ 


and Markets 


UK COMPANY NEWS 



Ultramar holds first-quarter profit 


DESPITE THE lower trend in 
.oil industry profitability, results 
of Ultramar for the first quarter 
of 1982 have held at about the 
same level as last year. Operat- 
ing profits, before tax, were 
£*3.7m for the period, compared 
with £42m for the correspond- 
ing three months of 1981. 

The results have benefited 
from the refative strength of 
the U.S. dollar against sterling, 
as the greater part of the group's 
earnings continue to be in 
dollars. 

After charging tax of £21.9m 
f£20.9m) and unrealised foreign 
exchange losses of £1.7m (£0.9m 
gains) — arising mainly from a 
weak Canadian dollar — the net 
result was down £0.9m at 
£20.1 m. 

Stated earnings per 25p share 
decreased from 20.5p to lS.7p. 

Mr Arnold Lorfaeer, the chair- 
man. says the immediate future 
for the oil industry is uncertain 
because of continued weak 
economic conditions and un- 
stable petroleum product prices 
m the Western world. 

Under these circumstances, he 
says it is difficult to forecast 
the level of profitability for 19S2 
but at this si age. it is thought 
unlikely that the results for the 


succeeding quarters can be 
maintained at the same pace as 
for the first quarter. ^ 

Sales for the first quarter 
amounted to £343.Sm, compared 
with £311.7m, while trading 
profits rose by £3. 7m to £50. 7m. 
The group’s Indonesian and 
Canadian companies contributed 
most of the profit. The shipping 
division defied poor trading con- 
ditions and contributed a small 
profit as a result of its activities 
in the U.S. preference cargo 
trade. 

The results of the group's UK 
and Caiifornfan marketing 
operations reflected the difficult 
trading conditions hi those 
areas, while the North Sea pro- 
duction side was adversely 
affected by high taxes and lower 
crude oil prices. 

There was a sharp drop in oil 
sales in the first quarter of 19S2 
as compared with the same 
period last year. This was partly 
a reflection of the general world- 
wide decline in the demand for 
oil and partly the result of not 
trading in bulk cargoes through 
Ultramar's Caribbean companies 
nr processing crude oil in the 
UK. 

Sales of oil for the period de- 


clined to 186.100 (225.100) bpd. 
Oil refined was 91.700 (69,300) 
bpd and oil produced 9,600 
(9.700) bpd. Gas produced 
averaged IS 4.4m (187.2m) cubic 
feet per day; 50 (21) gross wells 
were drilled and 25 (16) oil and 
gas wells were completed, in 
which the group has varying in- 
terests. 

First quarter capital expendi- 
tures totalled £36. 3m f£15.5m). 
The chairman reports that the 
capital expenditure programme 
is on schedule and first results 
from these investments axe ex- 
pected to be seen by the end of 
1983. 

The programme includes the 
modernisation of the Quebec re- 
finery, doubling the capacity of 
the Indonesian LNG plant, the 
development of the Maureen 
Field in the North Sea and the 
construction of six oil-bulk-ore 
carriers at the Puerto Real ship- 
yard in Spain. 

The group’s exploration drill- 
ing programme in the North Sea 
and in Egypt is also progressing 
well and has given some 
promising leads for future drill- 
ing. 

Cash flow from operations for 
the three months was £33.3m 


(£31. 8m) while working capital 
at March 31 1982 totalled 

£102.1m, against £77. 2m a year 
earlier. 


comment 


-Fit slides to £1.56m for year 


A SLUMP in second-half taxable 
profits from £I.S8m last time to 
£0.1 lm has left full year figures 
to end February 1982 of Kwik- 
Flt (Tyres and Exhausts) Hold- 
ings showing a marked reduction 
from £4.01m to £1.56m. Turnover 
for the 12 months improved 
from £29.25m to E34.37m. 

The hoard says, however, that 
the first two months of the 
current year have already 
shown asignificant improvement 
over the same period of 19S1. 

The final dividend is effec- 
tively unchanged at 0.882 p net 
for a total payment of 1.364p 
(same) per lOp share. Stated 
earnings per share dropped 


from 4.36 p to 3.57p. 

Pre-tax profits for the year in- 
cluded higher exchange and 
translation gains of £246,000 
(£27,00) but lower property and 
other income of £241,000 
(£436,000). Last time, there was 
also a loss of £42,000 From dis- 
continued operations. 

There was a tax credit of 
£233.000, against a charge of 
£1.99m previously. In 1081 an 
extraordinary credit added 
£l.69m. 

In current cost terms, profits, 
before tax. were £l.l9m. 


• comment 

When it wasn’t fitting new tyres 


and exhausts last year Kwih-Fit 
spent its spare moments (and 
there were plenty of them judg- 
ing by the results) in talking 
down some heady market fore- 
casts for the year just ended. In 
that respect it was successful. 
The virtual disappearance of 
second half trading profits was 
greeted with equanimity in the 
market The shares rose 4p to 
50p though they are still a long 
way short of last year's 112p 
peak. Apart from the more 
general pressures of weaker 
volumes and tighter margins 
Kwlk-Fit was paying the penalty 
of rapid physical expansion. 


Receiver called into Woodrow Wyatt 


BY JOHN MOORE, CITY CORRESPONDENT 


Woodrow Wyatt Holdings, the 
printing group headed by Mr 
Woodrow Wyatt, a former 
Labour MP, is going into re- 
ceivership. The announcement 
last night came after a day of 
speculation following the sus- 
pension of the group’s shares. 
Immediately the ubiquitous Mr 
Robert Maxwell began talks for 
a possible rescue. 

The shares of the company 
were suspended on the Stock 
Exchange yesterday. A state- 
ment said that dealings had been 
halted “ pending clarification of 
the company's position." 

The company had not yet re- 
ported on its last financial year, 
which ended on March 31. At 
the time of the suspension the 
shares were quoted at 7*p, 
having fallen from lOp earlier 
this year. 

The suspension share prices 
places a value of £310.000 on 
the company. 


Earlier this year. Woodrow 
Wyatt reported losses for the 
half year to September of 
£596,040 compared with a loss 
over the comparable period in 
the previous year of £24.617. 

The directors of the company 
said that the recession caused 
considerable excess capacity in 
the company's section of the 
printing industry which has en- 
tailed persistent reduction in 
profit margins. 

Woodrow Wyatt Holdings came 
to the stock market in 1973. 

Barclays Bank has been 
appointed Receiver to the com- 
pany. 

Mr Woodrow Wyatt said last 
night: “It is very sad that the 
printing group, of which I am 
chairman, felt obliged to ask 
Barclays Bank to appoint a 
Receiver. 

“Bad conditions in our sector 
of the printing industry had been 


causing considerable losses for 
some time past. 

“These were exacerbated by 
the actions of members of the 
National Graphical Association at 
the Banbury factory who, at the 
beginning of April, refused to 
discuss necessary plans for 
reducing unit costs of production 
and resorted to damaging in- 


King & Shaxson improves 


BANKERS King and Shaxson 
lifted profit for the year to April 
30 1982. from £915,229 to £1.08m. 
after rebate, tax and transfer to 
contingencies provisions. 

A final dividend of 5.5p net 
per 2Qp share, up from 4.75p, 
raises the total to 6.5p (5.75p). 

There was a £200,000 transfer 
to general reserves (same). 

In March the investment 


management subsidiary. King 
and Shaxson Fund Managers, 
and subsidiary management com- 
panies in Jersey, Guernsey, the 
Isle of Man and Singapore; were 
acquired by Britannia Group of 
Unit Trusts. 

The initial consideration was 
£200.000. and a further deferred 
consideration will be paid based 
on the value of the funds under 
management on June 30 19S2. 


Currys continues to spread 

far and wide 


Currys nationwide j 
branch network has 
now reached a 
total of 584 
outlets. 


Currys arm to become market leader m the rape! y 
growing micro-systems retail market 




/ 


'A. 




Year ended January 1982 
(52 weeks) 
£279.3m 


1981 
(53 weeks) 
£2612m 


Profit before Interest and Credit Sales provision 


£11.7 m 

£10.5m 

Increase in provision for unmatured profiton Credit Sales 


£1.7m 

£0.8m 

Interest Receivable 


£1.3m 

£2i3m 

Profit before Tax 


£11.3n» 

£12.3m 

Profit afterTax 


£9.8m 

£10.3m 

Dividend per Share 


4.95p 

4.5 p 


Despite the recessionthe Currys Group 
has continued to expand. In 1981/82 thirty 
new trading units were opened under 
the names of Currys.Bridgers Discount 
Carousel Colourhire,Micro-C and 
Mastercare. In addition the year saw an 
important milestone in the opening of the 
500th Currys shop. 

Substantial further investment in tele- 
vision rental took place; the rental account is 
now in profit and this will grow in the future. 
The investment in rental and new shops led 
to a reduction in the interest receivable. 
Increased credit sales during the second 
half created a big increase in the provision 
for unmatured profit on credit sales. 
Although these factors depressed the profit 
before taxthe Directors are confident of 
future performance. 


Points from the Statementbythe Chairman. Dennis Curry. 
Record sales with turnover at £279m (up 7%). 

* Total dividend of 4.95p per Share (up 10%). 

* A difficultyear but productivity up and direct expenses 
well contained. 

* Property portfolio strengthened further-growth in net 
assets vaiue of Company Cl 3m on C.CAbasis. 

Currys is built on an exceedingly firm base and our 
investmentwill continue. 


* 


LOOKJNGTO THE FUTURE "Wfe are committed to expand 
further our rental operation, the Bridgets Discount chain - 
and the substantial business conducted outside the Group 
by our service subsidiary. C G S Limited. Currys Micro- 
Systems' recent sales have been encouraging and it is our 
intention to secure a profitable share of this rapidly expand - 
'mg market Our expansion of the traditional Cunys chain of 
shops will continue. V\fe still have a few gaps on the map 
buta major task for the future will be replacing existing 
units with bigger and/or better shops.' 


Fora copy ofihe Annual ’/teoortcontacfThe Secretary. 
Currys Group pic (ret F-T . j. 46/50 UxbrkJge Road, Ealing. 
London W5 2SU. Telephone: OI-567 6617. - 


Currys 

GROUP pic 


Bank of 
Ireland 
up I£10m 


HIGHLIGHTS 


Ultramar's first quarter net 
quarter net profit, slipping about 
10 per cent under the buoyant 
£22m of 198 L was almost exactly 
what most analysts were looking 
for. But the shares came off 22p 
to 438p, probably because the 
jobbers were sensitive to the 
chairman’s doubts over the rest 
of 19S2. It is quite possible that 
things may yet go sufficiently 
awry in Eastern Canada to spoil 
the 1982 earnings estimates. 
However, Ultaxnar has done 
better so far than other Canadian 
integrated oil companies, making 
perhaps £7zn in Canada in the 
three months. In any case, the 
argument for holding the shares 
is the upsurge in earnings after 
the final quarter of 1983, when 
LNG output from Indonesia 
should be approaching 120 loads 
per year (compared with 70 or 
so at present). In that perspec- 
tive. a yield of 4.2 per cent may 
not seem too low. It is the inter- 
vening period which gives rise 
to doubt. 


When it bought Firestone’s 180 
depots in the autumn of 1980 and 
almost immediately sold SO odd 
of them on to Dunlop covering 
the original purchase price it 
was hailed as a fleet footed deal. 
But those Firestone depots were 
more run down than perhaps 
even Kwlk-Fit realised. They 
lost the group £1.2m last year. 
But they are being pulled round 
and should be near break-even 
in 1982-83. So given a little up- 
swing in the market overall 
profits could touch £3m pre-tax. 
Just the beginning of the 
recovery perhaps— .but fairly 
much in a yield of 4 per cent 
and p/e on stated earnings of 16. 


dustrial action. The unavoidable 
result was receivership. 

“ With the agreement of 
Barclays Bank and the Receiver, 
Mr Robert Maxwell has been 
given an opportunity to review 
the situation to see whether con- 
structive proposals can be put 
forward to enable the business to 
continue." 


HIGHER pre-tax profits have 
been shown by the Bank of Ire- 
land for the year to March 31 
1982, rising from X£52.7zn to 
l£62.6m. 

During the year the directors 
say improvements were achieved 
in cost control and operational 
effectiveness within the group. 
Thcy point out that a material 
recovery in group operating 
profits was negated by the im- 
position of levies by the Irish 
Government which they claim 
were not related to the profits of 
the bank. 

An unchanged second interim 
dividend has been declared of 
3.5p plus an additional dividend 
of 10.5p (same) on account of 
tbe year to March 31 1978. The 
total for 1981-82 is repeated at 
11.5p. Earnings per £1 share 
are shown as slipping from S8-5p 
to 82.9 p. 

Interest costs rose from f4.4ra 
to £6-3m. Attributable profits 
emerged lower at £36.2m 
against £3 8.5m. 

On a current cost basis pre- 
tax profits were £22.8ro f£12-8m) 
and earnings per share were 
given as 6.9p (12.4p). 

• comment 

Bank of Ireland had a reason- 
able year, considering the prob- 
lems of recession and regulation. 
The CCA gures draw rings . 
around the stiff tax*Ievy from the 
Irish Government which push the 
bank into a CCA loss after tax. 
Still. I£5m of the company's total 
tax charge is deferred and it is 
by no means certain that the levy 
will be maintained in the current 
year. Even so, regulatory’ hassles 
have meant that the bank is 
weeks late in putting up its 
deposit rates after the merchant 
bank's money market rates have 
gone up. As a result, deposit 
growth has slowed signicantly in 
the latter half of the year, ending 
up 18 per cent higher at L£26m 
against LEU. 3m last year — due to 
the deep recessionary climate 
which shows little signs of 
abating. Further, the recent 
wage settlement will mean staff 
costs swollen by a third in the 
current year. The shares have 
been tumbling since the interim 
announcement but regained some 
ground in the last few days. Up 
2p yesterday to 237p, tbe yield 
is around 11 per cent 


The Lex column today looks at the U.S. airline Branlff 
International which is seeking protection from its. creditors by 
filing for Chapter 11, and the implications for the airline 
industry in the U.S. Tbe column goes on to examine the 
38 per cent slide in first quarter pre-tax profits at BASF from 
DM 446m to DM 276m. It considers Guinness Peat’s plans to 
sell off its commodity broking division to a consortium led fey 
Lord Kiss in. At the electricals and electronics giant Philips 
there is a healthier picture with volume moving ahead though 
first quarter profits slipped from FI 134m to FI 116m- Lex also 
discusses Trident’s gamble in buying Playboy which . -has 
achieved partial success. 


129% rise 
for former 
Gill and 



Duff us chief 


Management may buy 
Guinness Peat arm 


BY PAUL TAYLOR 


Guinness Peal, the troubled 
commodities and banking group, 
which - includes the merchant 
bank Guinness Mah on, is 
considering a management buy- 
out of its commodities trading 
interests. 

Mr Alistair Morton; the. former 
British National Oil Corporation 


THE FORMER chairman of Gill ’ 
and Duff us. the commodity 
brokers, received a £119,000 pay j 
rise in 19S1, it is revealed me 
the group’s latest report a mLi 
accounts. ■* 

Mr Pat Aitken, an American £ 
who left the company as chair-;; 
man in February, is shown, in 
the latest annual report as.! 
having collected a £211,654 salary.^' 
in 1981 compared with £92.289-, 
in the previous year — an increase^ 
of 129 per cent 

Mr Aitken’s sudden departure'! 
earlier this year came with a.^ 
statement saying that he was-i 
finding the “burdens" of being'.' 
a transatlantic chairman “not,, 
practical in view of the demands^, 
of the growing company." .J 


dividend. The company blamed 
the "disastrous losses" In its 
Chicago animal fats venture for 
part of its decline. 

The Chicago venture lost £4m 
in 1980/SI and another £4.9m in 
the next six months. 

The group's strategy, has been 

to reduce its borrowings u „ u - w 

finance chief who took over through disposals and . closures, agreement with the group's New 
from Mr Edmund Dell as chief ~ - — 1 — ♦' — — -• 5 


Based in New York, he was 
chairman for two and a .half J 
years, and was with the com-’, 
pany-for 30 years. At the time!] 
of his resignation it was said j 
he had entered into a consultancy 


Mid Southern 


Mid Southern Water Com- 
pany's recent offer for sale by 
tender of £7m 9 per cent re- 
deemable preference stock has 
attracted applications for £9.9m 
worth of stock. 

The lowest price to receive a 
artlal allotment was £100.43. 
le average price obtained waa 
£100.98. 


!S 


executive of Guinness Peat m 
January*, said the company 
wishes to reduce its involvement 
in commodity trading by the 
disposal of most of its activities 
in that sector.” 

Mr Morton said that manage- 
ment together with other 
investors including Lord Kissin, 
lie group’s founder and former 
chairman, had expressed an 
interest in forming a consortium 
to buy control of the group's 
commodity trading interest “ on 
terms based on net asset worth 
on April 30." . . 

He said “ amicable discussions" 
were taking place which may 
result in the disposal of the 
commodity trading interests of 
the group subject to share- 
holders’ approval and with 
Guinness Peat retaining minority 
interest Meanwhile the division 
will continue to trade normally. 

The sale of the group's com- 
modity tdading interests, which 
include the Wilson, Smitbet and 
Cope group of futures tradiDg 
companies and Lewis and Peat 
London’s leading phical rubber 
trader, would continue a major 
slimming downu process begun 
by Mr Morton in order to re- 
duce the group’s borrowings. 

Since Mr Morton took over as 
chief executive after a long run-' 
ning dispute between Mr Dell 
and Lord Kissin, the group has 
announced the sale of its stakes 
in United International, the U.S. 
money broking and computerised 
financial sendees operation for 
£18m, and its stake in Perform- 
ance Tyre, the U.S. tyre-mer- 
chants. 

In March Guinness Peat 
announced a pre-tax loss of 
£7.4ra fgor the six months to end 
Octber 1981 and omitted its final 


Holt Lloyd profit 
falls to £3.1m 


AS PREDICTED in March by 
Mr Tom Heywood, the chairman 
of Holt Lloyd International, 
taxable profits of this car-care 
products group ended the 1981/ 
1982 year slightly lower at 
£3. 07m, compared with £3 .27m 
-previously. 

They had shown a marginal 
improvement at midyear, rising 
from £2ra to £2. 19m. 

Full year turnover, to 
February 27, 1982. rose by 13.4 
per cent to £5Q.S5m (£44.S5m), 
but at the trading level profits 
were behind at £3. 73m, against 
£4.15m. 

However, the total dividend is 
being maintained at 3.17p net by 
a same-again final of 1.67p— 
stated earnings per lOp share 
were a shade higher at 5.6 p 
(5.56p>. 

Mr Heywood comments that by 
far the most important factor in 
announcing a downturn for the 
second year running was the con- 
tinuing UK recession. He points 
out though that the strategy 
initiated some years ago in 
extending the group’s businesses 
internationally has not only 
proved vital to the continuing 
prosperity' of the group, but 
enabled it to withstand the 
severity of the recession in the 
home market. 

He says tbe group is now in a 
position where 51 per cent of 
turnover and 68 per cent of 
trading profits are contributed 
hy overseas operations, against 
30 per cent of both turnover and 
profits six years ago. 

The taxable surplus was 
struck after interest charges of 
£706.000 (£919.000) and included 
a share of profits of associates 
amounting to £47,000 (£43,000). 

Tax took £905.000 i£l.llml 
and after minorities of £141,000 
(£152,000) and taking iu extra- 
ordinary credits of £7,000 
(£125.000) the balaace at the 
attributable level emerged 
£103,000 down at £2.03tn. 

Retained profits were 
£887.000 (£990,000) alter divi- 
dend payments of £Z.24m 
(same). 

Commenting on the results the 
chairman says that as he re- 
ported in March the recession 
cut savagely into the per- 
formance of the UK division — 

Overseas, the group operated 
extremely well, with the Euro- 
pean nperatlons. particularly the 
French company, showing’ a sub- 
stantial increase in sales and 
even better profit growth. 

In the U.S., despite tbe re- 
cession there, the group 
achieved considerable growth, 
while in Canada there was a 
break-through. In the Far East 
the highlight wax the new 
venture in Japan, the potential 


here being "high." Elsewhere, 
the chairman says existing dis- 
tributorships are being con- 
solidated and new ones created. 

The Australasian division pro- 
duced good sales increases but 
profits, in sterling terms, were 
■•flat" due to higher marketing 
spending and because of the 
reorganisation of the New Zea- 
land manufacturing facilities. 

Mr Heywood concludes that it 
is top early in the year to make 
a confident forecast, particularly 
as the recession continues 
worldwide. However, he says 
the group is well-placed to take 
advantage of an upturn when it 
comes. 

A breakdown of group sales 
shows: car care UK £21.59m 
(£22.67m), overseas and export 
£25.93m (£19.38m) and food 

£3.33m (£2.Sm). 

Current cost accounting re- 
duces the pre-tax figure to 
£1.96m (£2.31 m) and earnings 
per share to 2.82p <3.Up). 

Despite a continuing policy 
of investment overseas, notably 
In Japan, the group’s overall 
borrowings have been contained 
at ahout a third of shareholders’ 
tangible net funds. 


comment 


Holt Lloyd's trading in the UK 
remained depressed through to 
the year end. Over the last 
two years unit sales have fallen 
by 15 to 20 per cent against a 
background of quickening price 
competition, with the almost 
inevitable result that margins 
have been squeezed to about 6 
per cent. Trading profits in 
the UK durnig 1981 were thus 
cut almost in half, to around 
£lim. It is as well that Holt's 
overseas diversifications seem to 
be paying off fairly handsomely. 
The U.S. business alone con- 
tributed about £lm before 
interest, and France also per- 
formed creditably. The main- 
tained dividend gives some sup- 
port to the shares, yielding 10 
per cent (covered historically if 
not under current cost). 



The Lombard 
14 Days Notice 
Deposit Rate 
is 


m 


Lombard North Central PLC, 
17 Bruton St., London wt A 3DH. 

For details phone 01-409 3434 


THE THING HALL 
USM INDEX 
123.2 (+0.1) 

Close of business 13/5/82 
BASE DATE 10/11/80 100 
TcL: OX-638 1591 - 


LADBBOKE INDEX 
Close 583588 (-4) 


On April 30 last year the" group York operating company. , 

had net tangible assets of After tbe past year, which saw : 
£41. 84m, long term loans of the group make two downward.- 
£29. Bra and - net short term revisions in profits forecasts, tin- I 
borrowings of £76.6m. By cover big losses in its Hong ; | 


October 31 net tangible assets 
had fallen to £26. 4m, long term 
loans to £20.5m and net short 
term borrowings to £74. 3m. 

Mr Morton said yesterday that 
the objective was to take the 
group out of activities which 
“consume a lot of cash" for 
little return. 

He said the decision to dispose 
of the group's commodities 
trading interests had been taken 
by- the ■ whole board and that 
there was “no coflict in the 
. boardroom.” 

Other groups had expressed 
an interest in buying the com- 
modities . trading businesses but 
Mr Morton said that at the 
moment discussions were only- 
taking place with the manage- 
ment group. No deadline has 
been set for these negotiations. 


Kong subsidiary arising from 
‘•unauthorised trading," and end i 
with .profits almost halved at 
£l2.8m, the latest report con- "*• 
tains no new predictions for 
1982. t 


TR Technology 

ire of TR,. 
at Trust 'T 
to 3.69p,;i 
the year I 


Earnings per 25 p share of TR, 
Technology Investment 
improved from 3.58p 
while the dividend for the year 
ended March 31 1982 is main- f 
tained at 3.3p with a same-again 1 
final of 2.3p net i 

Total -income was . ahead at 
£7.71m (£7.2m): Expenses and | 
interest pay-able accounted for 
£l.34m (£1.13m) and tax charge [ 
increased from £2. 03m to £2 .24m. | 
'• Net asset value per share ' 
increased from 121.5p to 12Sp. i 


meet 


till* 



PLC 


Extracts from the Statement by the Chairman, 
Mr. E. G. Gibbs 


T 


Group profit afterprovidingfor taxation 
and a transfer to Inner Reserves amounted . . 
to £4,311,000. ' ' " 


* Inner Reserves standataliiglierfigiiretlian ever 
before. 



-Sf It is proposed thata final dividend of lQ.75p 
(1981 9p) be paid on each Ordinary Share of: 
When addea to the InterimBividendalread} 
paid of 5p (198 1 5p) this makes a total of 15.75p 




be paid to Shareholders on the register atthe 
close of business on 27th May 1982. 



The Group’s Disclosed Shareholders’ Funds 
stand at £32.13 million compared with 

4 A ‘If* 1 * 


£30. 1 8 million last year. 


The Total Assets of the Group excluding bills 
subject to repurchase arrangements amount to 
£1 ,564.6 million compared with £1,464.9 million 
in 1981. 


-5f In preparation for the opening of the London 
International Financial Futures Exchange we 
have set up a specialised company called GNI 
Limited in conjunction with Inter Commodities 
Limited. We are very pleasedto be in association 
with Inter Commodities and have purchased 
10 % of the issued share capital of their holding 
company. 


Year ended 5th April 1982 

Profit for the Year £4311m 

Total Cost of Dividends £2J356m 

Disclosed Shareholders’ Funds £32.134m 
Total Assets £I564.578m 


19*1 
£5.801m 
£2.094 rn 
• £30.179m 
£146*.973m 


32 Lombard Street, London EC3V SBE Tel : 01 -623 3981 . 

Members of the London Discount Maricat Association 



Associate Director 


for 


independent and profitable 
financial /corporate 
advertising agency 
(London) 

A unique opportunity has arisen for a senior person to 
join avery successful, small specialist Gtv agency. 
Applicants should be fully conversant with all aspeds 
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A salary of around £14,000 is envisaged together 
a car, BUEA. and non-canbabuiory peisknisd leifle.- 


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'■’• i£ a «*; 

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20UC 


Financial Times Friday May 14 19S2 

CospaBttt asd Markets 


BIDS AND DEALS 



27 


Charter bid for Anderson Britannia Arrow active 
brings Scottish opposition both sides of Atlantic 


COMPANY NEWS 


BY MARK MEREDITH. SCOTTISH CORRESPONDENT 


CHARTER CONSOLIDATED, the 
mining finance group, yesterdav 
sene out its formal bid to .share- 
holders to take over Anderson 
Strathclyde, the Glasgow mining 
equipment company. 

Anderson Stralhdyde's board 
has rejected tEe bid and 
launched a campaign to prevent 
Charter Consolidated from 
increasing its 25.* per cent share 
in the company to win control. 

Mr Neil Clarke, chief executive 
of Charter, in Glasgow to support 
tiie offer document, promised 
autonomy to Anderson in the 
face of criticism about Hie 
potential less of independence 
for a key Scottish company. 

He add Anderson would 
benefit from the funds Charter 
would bring in for future 
investors. 

Charter lias offered share- 
holders 135p per share, which 
values Anderson at £64jn. com- 
pared with net assets of £40iu in 
March 19S1. Charter says the 
offer means a substantial pay- 
ment for goodwill. 

Charter has also cast doubts 
on Anderson's past performance, 
which drew anpry rebuttals Trom 
Anderson's chief executive. 

Considerable opposition has 
already grown id Scotland to the 
takeover bid for the third largest 
engineering company, and there 
has been pressure to pans the 
issue to the Monopolies and 
Mergers Commission. 

Mr Clarke, obviously aware of 
the uphill battle Charter faces, 
said ho Lbou&hi it was in the 


national interest to Late healthy 
companies, " Intle^eadecce may 
be an extremely gr.ud thing, but 
tet iia have hcjlL’iy companies." 

Aoder:-;oii mtvcs a large jnaruet 
with more than 90 ppr cent of 
its products sold subside Scoi- 
land, he said. "You've pot to 
have an i«;ern.r.iona! diuieaaion 
lo i? and not a purely Scottish 
one." 

Mr Clarke .-.aid that onlv 
about IS per cent of the Jurc- 
hoidcrs of Anderson had 
Scottish addres-i;.-.. * A -hiuj made 

pic i^sue «f Sc-tiiu-:u cwncrsbip 
less real than it .sctntt-.-J 

Hu haii asked abjUj lli< recent 
decision of the Monopolies and 
Mergers Commission recitin- 
mending iha: rival tiUi.-.ide bid-, 
for !ht Royal Bunk of Scotland 
be turned cnv.n bucau-.e of She 

impair the takeover v.nuld have 
aa the Seosnsh economy. 

"If the Commission ruling on 
trie Kuy.il Bark sunulj means 
that v/bea you it-li iiy far ihe 
greater par: of your product* to 
wnrid markets, you have \a be 
Seoitish tu dr» it, :hcu tiiai'.; an 
issue i would he very happy to 
argue uiffon- tJit-ni. bvcau'c I 
think it's nonsense " 

Mr Clarke anti Charter officials 
yesterday called on the S.-ottM: 
CB1 and the Sli.iIiisn iCcnnurair 
Planning Dcpartmvst, and There 
was talk of a visit »u the Senltiih 
TUG. 

Anderson Strathclyde. Mr 
Clarke sold, "has ;i?o inriviiDas 
of an industry wc UBd<.*r?tand 
and an industry we *.e!v*let! to 
enlarge our present tniL. r e>b\ it 


ba.'i the characteristic o: being 
able lu compete with ils major 
i-omepiiturs in Germany, the 
U.S. and France." 

He said Andmou had shown 
iigns in the past of having 
difficulty meeting market 
requirements. 

Charier had carefully 
rew*arehcd Anderson’s perform- 
ance among its, customers 
and had found that at limes the 
company had been under .'.train 
10 meet delivery dates “ perhaps 

because uf a im-l; of investment. 

they have perhaps Ixn-n too slow 
to respond to customer require- 
ment* and problems.” 

Mr Ian Little, deputy manag- 
ing director of AndCRXin 
Strathclyde, claimed however 
that the increased market share 
uf the company, which was now 
the world's largest supplier of 
shearing equipment tor miUL-s. 
flowed a good response frum I ho 
customer. 

Mr Chirk o said in tin.- niter 
decumc-ci that the offer rejin- 
seated a premium u( almost 
£3 per cent over the middle 
market quotation uf 105f» per 
ordinary share un April US and 
a multiple of nearly I7.B limes 
fuilv-taxed earning-* fur the year 
ending September fit) lfiSl. 

He said the scope lor lung- 
I will gruv.lh of dividends ai 
Anderson would be restricted by 
cash flow constraints euusi-d by 
heavy hi vestment ci«t- to meet 
oversea-, cntnpi-tilion. 

Thi: dorunu-nl repeats 

Charter's statement on Andc- 
MinS autonomy. 


Britannia Arrow Holdings ln!d 
shareholders at the annual 
nice ung yesterday nbcul two 
new deal.'', being set up on 
different sides uf the Atlantic. 

The most advanced cf the two 
is an agreement already reached 
hi lake r.ver a l ! .S. investment 
management group ** menacing 
between SSOOm and $lbn (mostly 
mutual funds)." The consider*- 
non will be "under $ll)nj " 

Back in the UK. meanwhile, 
Mr Geoffrey Nippon Mi*, chair- 
mait, said that Britannia is “in 
(iiscuvsion with Mr Robert 
Maxwell, chairman of British 
Print and Communication 


Corporation, with tin? inicn:ion 
of leiring up the Hcidisg and 
Keer.nstruclifm Corporation with 
an initial equity and loan capita! 
of Liw. 

“The purpose of tiie Corpora- 
Lua.” Mr Nippon explamtii. "w;:i 
be to restructure companies 
with the avoidance cf bankers, 
customers and trade unicr.s, 
principally wdlicut tiie necessity 
of receivership and liquidation, 
bul where appropriate in 
co-opera lion with receiver? and 
liquidators.” 

Britannia has been deliberately 
vague abuui the details of the 

American deal which is ii;ll sub- 
ject to Federal and Sure regula- 


tory triprival-J. T*::e company 
keen tliat the identity of the 
l ; .S. group should not yet be 
revealed. 

Tin* move, however. w:Jl give 
Britannia its fir-* major presence 
:n the U.S. The group currently 
manages just over 5400m of 
usili.-eD funds and around 1125m 
of ifi'-urar-vc and pension funds. 

Dtscuisms l he current year, 
.Mr ittppnn :^:d that .so far “ unit 
rru-it sjIi*- have been in excess 
uf budget and we anticipate con- 
tinued iuceess in this 5eld. 

"We are cor.il afi’Jy examining 
acquisitions which will extend 
our areas uf operation." 


Maxwell bids for Lonsdale 


Mr Kuliert Maxwell, chainnan of 
British Printing and Cnmmuntea- 
lious Curporatlou. ended Stuck 
Markpl speculation last night by 
iaunehing through BPCC a 
cj.sii bid for Lousilale l ; niversal. 
the office equipment, stationery 
and ] inn ling croup. 

HPGf: bad picked up a 10 64 
jicr cent .slake in Lousdule since 
last uuuilh's “ dawn raul " on the 
company by John Meazic*. 
Menzies built up an 11.22 per 
cent stake before unking an offer 
for the rest uf Lonsdale at 60p 

The terms uf the BPCC offer, 
auuuunccd last night by its 
advisors Ilcury Anshacher and 
Cu.. is 66p cash for each Lonsdale 
share. This places a value os 


the company of £5.9m. 

Earlier this week, a letter from 
the Lonsdale boanl to Men.-ucs 
shareholders cave the company’s 
guarded blessing to the offer, 
pointing out that the hid v.:is 
"in excess of the value which 
might otherwise be attributable 
to your shares.” 

Mr Norman Raiusvycr. Lons- 
dale's chairman, however, advised 
ordinary* shareholders that they 
may wish " to wait until the 
intentions of third parties heroine 
clearer." 

Although in the L'K. Mr Max- 
well was not available for com- 
ment yesterday. The .stuck 
mariict, meanwhile, i' si;!! 
hoping for further develooir.eaLi. 


liioiigh tr.e Lonsdale share price 

-.lid Tip 10 HT-Tp. 

• Mr Mow.'c-l! agnour.t^-d yester- 
day i-ias. BPCC '.i paying £3.56m 
in ~o buy the asseii of 

Fiulas Printing and Publishing 
fn:::i tin* joint roceivers. 

az.-cv- eoutpRse book tie b Li 
of i'l.Sm u:tii the balance made 
no L-f -.Tuck, work m pregresi. 

aad equipment, free'uld 
and ieasciioid praperL:^?. 

BPCC is n educating to re-sell 
the <.f the llolsworthy Ari 

Pridu-.-s anj Publishing com- 
;ur.ifi • wh.cn da r.o! S: into Uie 
hu.v.r.e.-- profile of BPCC." 

Mr Maxwell sa.d he expect* 
trie retained parts of Finlai to 
break even m :!tc first year. 


Domecq having talks to buy 
out minority in Luis Gordon 


Barclays International Far East deal 


SHARES in the Luts Gordon 
Group, the Domecq sherry 
importer and distributor, were 
suspended yesterday when i‘. 
was announced that discussions 
are taking place over a possible 
buy out by Domecq of the 
minority share holdings in Luis 
Gordon that it does, not already 
own. 

The announcement said that 
discussions are being held to 
determine whether agreement 
can be readied on a recom- 
mended offer by Pedro Domccq 
Finance S.A.. a wholly owned 
subsidiary of Domecq for the 
outstanding minority shares of 
Luis Gordon which are nor 
already owned by the Pedro 
Domecq Group. 

Domecq announced its inten- 


tion fast month fu cxcrci^t: part 
uf an uption it has under a 1376 
agreement to subscribe for up to 
"m new orilinarj shared of JOp 
each. After the increase u-hich 
has now tone ahead, the Domecq 
shareholding in Luis Gordon has 
risen from 52 per cent to B9.3H 
per cec:. 

Lui‘ Gordon made a pre-ia.v 
loss of £465.000 on (urnuver of 
£14.97m ;n tiie 12 months c-ndeil 
December 31, J9S1. Domecq in- 
jected about £540.009 into Luis 
Gordon to strengthen the com- 
pany s capital haws and la rtf set 
the less and this year is contri- 
buting £550.000 towards a major 
marketing and advertising pro- 
gramme. 

Reports from Spain suggest 
that the recession in sherry 


«»ie* could he bottoming uut. 
The two companies have he hi 
talks tor the past week or so 
over a possibic agreement ami 
a further announcement ex- 
pected wiLhin the next week. 
The Luis f Ionian share price 
closed at 20 o on Wednesday. 

Lius Gordon is the sole dis- 
tributor for Dumecq products 
in tin* t’K and this country still 
remains the most impertam 
sherry market in the world. Salei 
Iasi year fell sharply due lo an 
overall drop in consuniptiun and 
a switch lo cheaper competitive 
brands. Luis Gordon expects to 
save £250,090 from cost ciittinv. 
ceUDOOlies during 19S2. II em- 
ploys about 12G people and also 
bandies table -.vines, brandy, 
liqueurs and port 


BY PAUL TAYLOR 

Barclays Bank International is 
ext ending its consumer finance 
interests in ;he Far East in a 
deal involving Jardinr Matheson. 
tiie diversified Hong Kong 
trading company. 

BB1 and Jardtne Matiieson are 
trebling the paid-up capital of 
I'uiied Merchants Finance to 
HK$73m (£7.02mi m an arrange- 
ment which will increase BBI's 
.-.take in the Hong Rung con- 
sumer finance company from 40 
per cent to 50 per cent. Jardme 
Malheson will retain the other 
50 per cent. 

UMF has assets of about 
HK$512m and plans to expand its 
consumer finance business from 
iis base as a provider of ear hire 
purchase and other consumer 
finance. The company's assets 
have increased from HK$215m in 
1377, the year after BBI acquired 
its stake from UDT. 

BBI wil (also lake over Jardine 
Barclay's other interests in con- 
sumer . finance companies in 
Japan, the Philippines and 
Thailand. 


Barclays said Lhe&e changes 
reflect the need in concur. : rate 
minority shareholdings m the 
companies in the hands of one 
shareholder. The hank added 
that Lite move also re flee I ed its 
confidence in the continuing ex- 
pansion of consumer credit in i1:l- 
region. 

AGO RESEARCH 
ACQUISITION 

AGB Research’s wholly owned 
subsidian*. AGB Publication^, lias 
acquired - West bourne Inter- 
national Holdings, a trade maga- 
zine publishing and international 
exhibition organisation company 
in a deal worth an initial £I.25m. 

AGB has paid £Im in cash aod 
tiie balance has been covered by 
a 6 i\ir cent loan note redeem- 
able on Mayl 12. lBSo. Additional 
sums may be payable up to th!* 
date based on a profit-related 
formula on Wesibourne's results 
for the year ending June 30 1SS5. 

AGB sees the Westbourne 


aitivuivs Lki.’iiplci.ientir.g iis own 
magazine and mar-teticj services. 
AGB Rcacarrtt is one of the 
research organ : nations in 
F.urnpe and reported pre-tax 
profiib of £2.04 ru an turnover of 
iTSnt for the six months lo 
Octuber 21. USI. 


GT. NORTHERN 

The offer by Great Northern 
Investment Trust far BIT has 
been declared unconditional. 

Acceptances of tiie offers have 
been received as follows: 21.57m 
ordinary shares (82.7 per cent); 
506.000 3.5 per cent cumulative 
preference shares (74.8 per 
cent); 512.000 4.2 per cent 
cumulative preference shares 
1 84.6 per cent). 

Dealings in new ordinary' and 
preference shares in Great 
Northern will start not later than 
May 21 1982. Share offers remain 
open for acceptance until further 
notice. 


Lloyds and Scottish 
profits are halved 


A NUMBER nf factors have 
contributed to Lloyds and Scot- 
tish, financier, reporting sub- 
stantially lower pre-tax profits 
for the half-year to March 31 
19S2 when the figure fell from 
£12-79m to r6.4Sm. 

The two main factors resulting 
in the downturn were the 
financing costs of acquiring 
Bowmaker and the purchase of 
the assets of Hamilton Leasing. 
On February 12 the acquisition 
of Bowmaker, a finance house 
subsidiary of C. T. Bn wring, was 
completed for a cash considera- 
tion ot £6&5ra. Hamilton Leas- 
ing was acquired from FFI (UK 
Finance), a subsidiary oi 
Finance for Industry, for a total 
consideration of £46.5ai. 

An interim dividend is being 
paid of l.S9p — last years 
single payment of 5.57p was 
made from pre-tax profits of 
£29. 24m. Tax fur the half-year 
fell from i*6^m to £2.06m. 
Minorities took £1S7,000 com- 
pared with £339,000. Slated 
earnings per 20p share were 
lower at 3.58p compared will 1 . 
5256p. 

Tiie directors say first half 
profits were also affected by 
business written in the preceding 
six months to September 30 1951 
when Base Rale average was 
13275 per cent. 

They say that this increase in 
the cost of money of over 2 per 
cent adversely affected prq>s in 
the instalment credit and leas- 


ing division, which suffered also 
from higher overhead vests and 
the continuing lugh level of 
arrears. 

In spile of the low level uf 
economic activity, they say a 
number of companies m the 
industrial and commercial divi- 
sion earned higher profits than 
in the corresponding period last 
year. 

Profits from the international 
division and, in particular. James .. 
Talcott Factors Inc. of the U.S.. J 
also increased. 

Lloyds and Scottish is a sub- 
sidiary of Lloyds Bank. 

Weather hits 
North Midland 
Construction 

Bad winter weal her before and 
after the Christmas-New Year 
holiday, combined with a tem- 
porary downturn in civil engin- 1 
eering work, hit profits at North 
Midland Construction. , 

In the half >ear lo February < 
2S, 19S2. profits of £46,637. down ■ 
from £102.498. were recorded 
after all charges, including tax 
of £50.524 (£111,040). Turnover ! 
eased from £3.91m to £3.S2m. 

The interim dividend is being 
held at O.bap ne.t per share. Last 
year’s total was 2.4p. Staled 
earnings per 10p share were 
3.4p, compared with 6.4p. 


BANK RETURN 


Wednesday 

May 12 1962 

Increase >-• or 
Decrease — ■ " 
lor week 

BANKING DEPARTMENT 

Labilities 

Capital 

Public Deposits 

Bankers Deposits 

Reserve and other Accounts 

£ 

14,553,000 
57,623,519 
520,830,490 i 
1,813,513,111 > 

T 

£ 

1,266,936 

22,109,306 

126,390,411 


2,386,520,122 

- 

217.232,781 

Assets 

Government Securities 

Advances & other Accounts 

Premises Equipment & other Secs. 
Notes.. 1 

598,932,755 

1,157.926,857 

644,146,698 

5,279,229 

H- 

107,380,000 

28,764,769 

105,649,746 

22,568,814 

Coin 

234.583 ; 

-»■ 

7,080 


2,385,520,122 

- 

217,252,781 

ISSUE DEPARTMENT 

Liabilities 

• 2 


£ 

Notes issued. 

In Circulation 

In Banking Department 

Assets 

10,600,000.000 

10,594,720,771 

5,279,229 

11,015.100 

3.051.666,149 

7,537.318,751 

1 1 1 

150,000,000 

127,451,186 

22,568,814 

Other Government Securities 

Other Securities 

— 

165,265,471 

15,265,471 


10,600,000,000 

- 

150,000.000 



•rLTiilH 


v «<■ a* 

r> Sascf? 
indi’ai ? 

C'fl'pSSt 




; 





iH? 






building for the future 

Review of Ultramar Group Financial Results and Operations 

for the First Quarter 1982 




Summary of financial results 

First Quarter 

1982 
£ million 

First Quarter 

1981 
£ million 

Sales 

343.8 

311.7 

Operating profit before taxation 

43.7 

42.0 

Net profit 

20.1 

22.0 

Cash flow from operations 

33.3 

31.8 

Capital expenditures 

36.3 

15.5 



Despite the lower trend in oil industry profitability! the 
financial results ol the Ultramar Group tor the First Quarter of 
1982 have held at about the same level as last year. The results 
have benefited from the relative strength. of the U.S. dollar 
against sterling as the greater part of the Group's earnings 
continue to be in dollars. . 

Our operating profit before taxation was £43,700.000 
compared with £42,000,000 for the first quarter of 1981. After 
deducting taxation, there v/as a net operating profit of 
£21 ,800,000 as aqainst £21 ,100,000 forthe corresponding 
quarter fast year. There were unrealised foreign exchange 
losses totalling £1,700,000 arising mainly from a weak 
Canadian dollar which brought the net profit to £20.100,000 as 
compared with £22,000,000 for the first quarter of 1981 . The 
latter benefited from unrealised exchange profits of £900,000. 

Our Indonesian and Canadian companies contributed 
most of the profit. The shipping division defied poor trading 
conditions and contributed a small profit as a result of its 
activities in the U.S. preference cargo trade. The results of the 
U K and Californian marketing operations reflected the difficult 
trading conditions in those areas while the North Sea 
production division was adversely alfected by high taxes and 

lower crude oil prices. ......... 

There was a sharp drop in sales of Oil in the first quarter of 
1982 as compared with the first quarter of 1981 . 

This was partly a reflection of the general world-wide 
decline in the demand for oil and partly the result of 
not trading in bulk cargoes through our Caribbean 
companies or processing crude oil in the u.K. 

The immediate future for the oil industry is 
uncertain because of continued weak economic 
conditions and unstable petroleum product prices 
in the Western World. Under these circumstances, 
it is difficult to forecast the level of profitability 
for 1982 but, at this stage, we think it unlikely that 


the results for succeeding quarters can be maintained at the 
same pace as for the first quarter. 

Our capital expenditure programme is on schedule and 
we expect to see the first results from these investments by the 
end of 1983. The programme includes the modernisation of 
the Quebec refinery, doubling the capacity of the Indonesian 
LNG plant, the development of the Maureen Reid in the North 
Sea and construction of six oil-bulk-ore carriers at the Puerto 
Real shipyard in Spam. Our exploration drilling programme 
in the North Sea and in Egypt is also progressing well and has 
given some promising leads lor future drilling. 


ARNOLD LQRBEER 
Chairman 


13ilt May 1952 



n 


Consolidated profit 
and loss account 


First Quarter 
1982 
£ million 


First Quarter 
1981 
£ million 


Year 
1981 
£ million 


Sales 

£343.8 

£311.7 

£1,392.5 

Profit on trading 

50.7 

47.0 

199.1 

Amortisation, depreciation, depletion 
and ameunts written oft 

7.0 

5.0 

1S.9 

Operating profit before taxation 

43.7 

42.0 

130.2 

Taxation on operating protit 

Current 17.2 


13.4 

55.4 

Deterred 4.7 


7.5 

32.2 


21.9 

20.9 

87.6 

Operating profit after taxation 

21.8 

21.1 

92.6 

Foreign exchange Jluctuations 
(ioss)/gain(Note2) 

(1.7) 

0.9 

Cl -91 

Net profit 

£20.1 

£22.0 

£90.7 

Cash flow from operations 

£33.3 

£31.8 

£136.4 

Earnings per Share 

18.7p 

20.5.0 

84.3p 


Notes 

t Group cppra'rng profits are largely in U S. and Canadian dollars. 

2 The :c?5s cn loreign Exchange Huciuarions of £1.7 million durina the first quarter oi IPS:? rotates 
almost entirety lo long term lodrss ot individual subsidiaries repayable over ide years to 1993. 

3 Translation end conversion exchange rates used by the Group are: 



31 st March 1982 

3!st March 1981 

SIslDecembf 

£1 equals USS 

1.78 

2.25 

1.91 

£1 equals Can.S 

2.19 

2.66 

2.27 

USSI equals Can S 

1.23 

1.13 

1.19 

US$1 equals Sv/.Fr. 

1.93 

1.32 

1.80 


Operating results 


First Quarter 
1982 




First Quarter 
1981 


Sales ol oil (barrels per day) 

Oil refined (barrels per day) 

Oil produced [barrels per day) 

Gas produced (thousands of cubic feet per dav) 
Gross wells drilled . !/<y 

Oil and gas wells completed fin which the 
Group hasvarying interests) 


186,100 

91,700 

9,600 

184,400 

50 


225,100 

69,200 

9.700 

187,200 

21 


Deckctnmur*} of /fie 
tcleureen Field production platform 

under construction ir. Scotend 


— "■■"——"I 

Please ^end me ropy of the full nevie .■/ - 

cl Group T ;r.jn?ia! Pe^uli • anc Or or a tons § 
lor me three months to 3 1st March 1GS2. ■ 



The British Oil Company 



























28 



KCA International RL.C 


Substantial increases for 
year ended 31 December 1981 


turnover £41.865,000-69% increase 

*Pre-tax Profits £8.012,000-115% increase 

’'Net Profit after fax £4,536,000-144% increase 

•Earnings per Share 11.06p- 61% increase 

•proposed Dividend for Year 5.5p- 4.8% increase 


Commenting on the results. Chairman Paul Bristol said **19S1 was a year of console 
dationforyour companyand we now have a firm Case toexpfGitwortdwide opportuni- 
ties during the next 5 years. 

‘‘AH paris of the group - Drilling. Fluids, Mineralsand Motor Vehicle Engineering - 
grew m real terms. The drillship Polly Bristol commenced its operations m September 
1981 and has been drilling lor the Spanish Stale Oil Corporation since that time. The 
GroupshQuidbenetitlromalulll2monthscontributionfromthevessflldurmgl982." 


■ r i. 

% 


Copies of lhel98l Report and Accounts can.be obtained from: The Secretary, KCA Interna- 
tional P.L.C., 9th Floor, Berkeley Square House, Berkeley Square, London W1X 6BY. 






M. J. H. Nightingale & Co. Limited 


27/28 Lovat Lane London EC3R 8EB 


Telephone 01-621 1212 


P/E 


. 1931-B2 
Hiah Low 

Company 

Gross Yield 

Price Change div (p) V, 

Fully 
Actual taxed 

130 

100 

Ass Bril. Ind CUL5 . 

123 

— 

10 0 

7.8 

w— 

— 

75 

62 

A.rqprunfl 

72xd 



4 7 

6.5 

11.4 

158 

51 

33 

Armitage 6 Rhodes 

43 

— - 

4.3 

10.0 

3.6 

6 1 

205 

187 

Etardon Hill 

203 

— 

9 7 

4.8 

9.9 

120 

107 

too 

CCL 11 pc Conv. Prof 

107 

— 

15.7 

14.7 




265 

240 

Cindico Group 

265 

— 

26.4 

10 0 

10.7 

12 0 

104 

61 

Deborah Services 

62 

— 

60 

9.7 

3.1 

5.B 

131 

97 

Frank Horsoll 

129 



6.4 

5.0 

11 6 

23 9 

S3 

39 

Frederick Parker 

76 



6 4 

8.4 

3.9 

7.4 

78 

46 

George Blair 

54 

— 

— . 

— 

— 


102 

93 

Ind. Precision Castings 

38 

_ 

7.3 

7.4 

7.1 

10.7 

109 

100 

tin Conv. Prel 

ing 



15.7 

14.4 



113 

94 

Jackson Group 

93 

— 

7.0 

7.1 

3.1 

7.0 

130 

ice 

Janies Butrough 

113 

— 

B 7 

7.7 

82 

10.4 

334 

238 

Robert Jenkins 

242 

— 

31.3 

12.9 

3 4 

a.6 

66 

51 

Scruttons "A" 

66 

— 

5.3 

80 

10.2 

94 

222 

159 

Torday & Carlisle 

159 


10.7 

67 

5.1 

9.5 

15 

10 

Twinlock Ord 

14 

_ 

_ 

. 



. 

SO 

66 

Twin lock 15pc ULS 

SO 

— 

15.0 

18.8 



44. 

25 

l/mloclc Holdings 

25 

— 

3.0 

12.0 

45 

76 

103 

73 

Wilier Alexander .. . 

82 

— 

6.4 

7.8 

5.4 

9.5 

263 

212 

W. S. Yeares 

230 

— 

14.5 

6.3 

6.0 

12.0- 


Prices new available on Presrai page 48146. 


INVEST IN 50,000 
BETTER TOMORROWS! 


50,000 people in the United Kingdom suffer from progressively 
paralysing MULTIPLE SCLEROSIS — the cause and cure of which are 
still unlmown— HELP US BRING THEM RELIEF AND HOPE. 

We need your donation to enable us to continue our work for the 
CARE and WELFARE OF MULTIPLE SCLEROSIS sufferers and to 
continue our commitment to find the cause and cure of MULTIPLE 
SCLEROSIS through MEDICAL RESEARCH. 



Please help — send a donation today to: Room F.1, 
The Multiple Sclerosis Society of GJ3. and N.I., 
286 Munster Road, Fulham, London SW6 6RE 


s 



Financial Times Friday May 14 1982 


Cospaaies and Markets MINING NEWS 


WMC seeks new partner 

for uranium project 


DIVIDENDS ANNOUNCED 


BY GEORGE MILLING-STANLEY 


AUSTRALIA’S Western Mining 
Corporation (MWC) is search- 
ing for a new partner or 
partners for the development of 
the Yeelirrie uranium project 
in Western Australia, following 
the decision by Esso Exploration 
and Production f Australia) to 
withdraw from the venture. 

Esso. a subsidiary of the U.S. 
oil major Exxon, said yesterday 
that it was withdrawing because 
its continued involvement was 
no longer economically viable 
under the terms of the joint 
venture agreement and its 
assessment of the outlook for 
the uranium market. 

Sir Arvi Parbo, WMC's chair- 
man. revealed that some poten- 
tial partners had already shown 
an interest in the project, 
reports Ian Perkin from Mel- 


bourne. WMC has a 75 per cent 
interest in the venture. 

The third partner. West 
Germany's VrangeseUschait 
with 10 per cent, is reconsider- 
ing its position following Esso's 
withdrawal. -It seems likely that 
the company will want to main- 
tain its involvement in the 
Yeelirrie project, as it Is com- ' 
mitted to further exploration 
elsewhere in Australia. 

UG could even decide to 
acquire some or all of the 15 
per cent interest which is being 
relinquished by Esso. 

Esso's withdrawal will come 
at the end of stage 1 oF the pro- 
ject, towards the end of this 
year or early in 19S3. 

The company said it will 
honour its agreement with the 
other partners in full, which 


means principally that It will 
be responsible for SO per cent 
of the estimated A$24m (£14m) 
cost of stage 1. 

Esso assumed responsibility 
for this share of development 
costs, which might appear dis- 
proportionate in relation to its 
equity interest, partly because 
it bought into the project some 
time after the initial discovery 
was made, and also because it 
was to receive a 50 per cent 
share of the uranium output 

WMC said that while it would 
have preferred Esso to remain 
part of the venture, all efforts 
will now be concentrated an 
restructuring the project so 
that it can. go ahead. 

The shares reacted sharply 
to the news in London yester- 
day, falling I9p to 218p. 


Long-term confidence at Amax 


LIKE MOST other leading mining 
companies. Amax nf the U.S. is 
tackling the present depressed 
state of the world's metal markets 
by limiting both short and long- 
term spending where possible. 

The group remains confident 
that it can meet the economic 
challenges, according to Mr 
Pierre Gousseland. the chairman. 

In its attempts to reduce 
spending in the short term. 
Amax has cut production levels 
in many commodities to match 
demand. The most notable 
example is in molybdenum, 
where the .group i6 die world's 
biggest producer. 

The big Henderson and Climax 
mines in Colorado are already 
working at about 60 per cent of 
rated capacity, and further reduc- 
tions by another 20 per cent are 
in train. 

Amar's total workforce has 
this year been cut by 2,500. and 
a further 650 jobs will go next 
month. 

Elsewhere, Amax has closed 
its phosphate operations in 
Florida, and these will remain 
shut-down for the rest of the 


year as a result of reduced 
demand. 

The major long-term expan- 
sion projects tn he postponed 
include the big but low-grade 
molybdenum prospect at Mount 
Tolman in ‘Washington. Amax 
had been contemplating expendi- 
ture of between $500m (£ 2 72m) 
on this deposit. 

However, the group is attempt- 
ing to maintain those projects 
which will be profitable in the 
future, and with this in mind, 
the molybdenum deposit at 
Mount Emmons in Colorado is 
being reassessed. 

This deposit, unlike Mount 
Tolman, is of a similar type to 
Amax's existing mines in the 
stalp, with several zones nf higfi- 
grade ore. These zones suggest 
a potential for profitable 
exploitation as soon as there is 
an upturn in demand. 

Amax is currently bearing the 
burden, in terms of interest 
charges, of molybdenum stocks 
amounting to well over one 
year's consumption at current 
rates. 

This is the highest level for 

more than 10 years, hut should 


P & O sees improvement 
in current year trading 


IMPROVED RESULTS for 1982 
are looked for by Peninsular and 
Oriental Steam Navigation Com- 
pany despite the disruption 
caused by the Government’s 
requisition or Canberra. Elk : . 
Uganda and Norland. Lord 
Inchcape, the chairman, reveals 
in his annual report to share- 
holders. 

He says that the rompany will 
benefit from the elimination of 
loss-making or low profit earn- 
ing activities and from some 
improvements in volumes 
moving in export trades. 

As already annnunred the 
niTTcnt year has not started as 
badly as 1981. but thp company 
has had to rnnteud with continu- 
ing industrial disputes in the 
ports or Southampton and 
Middlesbrough — although the 
rhairman points nut that these 
disputes have hpen settled, at 
least for the time being. 

He adds that thp continuing 
success of p &■ o Cruises has 
encouraged thp directors to place 
an order for a new cruise ship 
intended for operation in the 
American market after delivery 
in 1984. The ship will be built 
iri Finland. 

As reported on May 6. the 
group returned nre-tax profits of 
just under £41 m for 19RJ com- 
pared with £47m. after a sharp 
rebound fn the second six 
months. First-half profits had 
tumbled from £l2.9m tn £720.000 
as a result of various industrial 
disputes and riack world trade. 

The consolidated balance-sheet 
for 1981 shows shareholders' 
funds at f477.$Sm (£467. 06m) 
and net current assets at fB.SSm 
(£15.94m>. Capital rnmmitmentfi 
totalled £16. 64m (£10.28ra), in- 


cluding ships under construction 
and on order and modifications 
to existing ships. Meeting will 
he held at the Baltic Exchange, 
EC, on .Tune 10 at noon- 


Revenue rise 
at Cedar Inv. 


REVENUE 'before tax of £1.13m, 
up from £1.09m, is reported by 
Cedar Investment Trust for 
the half year to March 31 I9S2. 
Total income rose from £ 1.21m 
to £1.28m. 

As already announced, the 
interim dividend is 1.7 p net per 
share (same); the previous year's 
total was 4.6p. from pre-tu:: 
revenue of £2.41 m. Net asset 
value per 2Sp phare is given as 
124.7p ( 122.2p> after deducting 
prior charges at par but treating 
the 9 per cent convertible un- 
secured loan stock as fully con- 
verted. 

Revenue after tax was £744,786 
(£703,936). 

The directors conclude that 
unitisalioo would better serve 
the interests nf shareholders. 

T t may be gnm e time until cer- 
tain consents and tax clearances 
from the Department of Trade 
and Industry and lie Inland 
Revenue are nhiained. Definitive 
proposals, which the directors 
feel shareholders would find 
attractive, cannot be submitted 
to shareholders until then. 

They say shareholders who 
contemplate faking any action 
before receiving these proposals 
should consult their financial 
advisers. 


This advertisement is issued in compliance with the requirements of the Council of The StochExchange. 
It does not constitute an offer of, or irwita turn to thepublic to subscribe for or to purchase, any securities. 


U.S. $100,000,000 


Bank of Montreal 

(A Canadian Chartered Bank) 


14Yi% DEPOSIT NOTES DUE MAT 27, 1987 


The following hcive agreed to subscribe for the Notes: 

MORGAN STANLEY INTERNATIONAL UNION BANK OF SWITZERLAND (SECURITIES) LIMITED 

AMMO INTERNATIONAL LOOTED BANQUE NATIONALS DEPARTS 

DEUTSCHE BANK AK3TENGESEIISCHAFT NOWAK INVESTMENT COMPANY (SJLK) 

SALOMON BROTHERS INTERNATIONAL SOCBSTE GENERALEDE BANQUE S A. 

S.G. WARBURG & CO. LTD. WOOD GUNDY LIMITED 


The Notes* in denominations ofUJS. $1,000 and U.S, $ 10,000 with an issue priceof 100 percent, have been admitted to the 
Official List by the Council ofThe Stock Exchange, subject only to the issue of the temporary Global Note. Interest ispayable 
annually in arrears on May 2 7, commencing on May 27, 1983. 


Particulars relating to the Notes are auaildbfe in the Extel Statistical Services Limited and may be obtained during normal 
business hours on any weekday (Saturdays excepted) up to and including May 28, 1982 from the brokers to the issue : 


May 14* 1982 


ffoareGocettlM * 
Heron House, 
319-325 High Bolbom 
London wGflf TPB 


SPAIN 

Price 


May 13 

N# 

+ or - 

Banco Bitban 

34 4 


Banco Central 

338 



... 302 

-2 

Banco Hlspano . . . 

310 

+4 

Banco Ind. Cat .... 

114 


Banco Santander 

325 

+ 1 

Banco llrquiin ... . 

204 


Barm Vi.-cimm . . . . 

2SA 


Ksncn 7araan.-n 

=48 

+ 2 

hrMndn, 

148 

-2 

Fr-Plnol, Zmc 

59 


Fersa 

662 


Pincudni . 

no 


HHrnla 

... 67.7 


IHndii^rD 

57.7 

+ 0.7 

Pan nlan 9 .... 

905 

-0.7 

Pctrnlibar . .. 

99 


Sooctiia 

6 


Tololon’fjt 

. 725 

+2 

Union Elect 

56 

-1.7 


BIBA 

INTERNATIONAL 


Biba International 
holders of the Biba 
trade- marks through- 
out the world an nounoe 
the opening of a new 
International head- 
quarters to control their 
global activities. 


The address of their 
nevii headquartered 


BIBA 

INTERNATIONAL 
9460Wnshlre 
Bo u leva nde, Suite 81 4, 
Beverley Hifr* Ga. 
9021 2, U.SJL 


be readily turned to profit as 
soon as the steel industry, in 
particular. comes out of 
recession. 

Nickel stocks are also high, 
but Mr Gousseland commented 
that sales here are still at a high 
level. In fact, he expects Amax 
to sell about twice as much 
nickel this year as it will pro- 
duce, thus reducing the stock- 
pile and cutting financing 
charges. 

Another method of reducing 
Interest charges would be to sell 
any assets not central to the 
group’s future prospects, and 
this possibility is being explored, 
Mr Gousseland said. 


Reef/Basin 

takeovers 


A STATEMENT from Australia's 
Reef Oil and Basin Oil, replying 
to the proposed takeovers of the 
companies by Bond Corporation, 
will be sent to Reef/Basin share- 
holders by May 21, according to 
Mr Davfd TuUocb. chairman of 
Reef and Basin. 

The statement. Part B, will in- 
clude a fUH' valuation of Reef 
and Basin by consultants Martin 
Corporation. A previous state- 
ment, Part A, was sent to share- 
holders on May 7. 

Mr Tulloch advises share- 
holders to watt for the informa- 
tion in the Part ‘ B statement 
before making a decision regard- 
ing the takeover offer. 

Bond Corporation is offering 
AS1.30 (76p) a share fnr Reef 
Oil and AS1.50 (S7p) a share for 
Basin Oi! Bond currently holds 
3*49.9 ppr cent interest in Reef 
anil 30.S6 per cent of Basin. 

Mr Tulloch was appointed 
chairman of Reef and Basin on 
April 22. following the resigna- 
tion nf Mr Alan Bond. 



Date 

Corns- 

Total 

Total' 

Current 

of sponding 

for 

. last 

pay input 

payment 

div. . 

year 

year 

3.51 

. — 

3.5 : 

1L5 

1L5 

151 

July 2 

1.16 

— 

439 

Nit 

__ 

Nil 

— 

1 

Nil 



0.25 

Nil 

0.25 

1.67 

July 30 

1.67 

3J.7 

3.17 

5.5 

June 15 

4.75 

6.5 

5.75 

0.63 

— 

0.68* 

1.36 

136* 

1.89 

Aug 2 

— 

— 

537 

0.65 



0.65 

— 

2.4 

0.35 



1.3 

0.35 

2.6 

145 

July i 

12 

20S 

18 

2.3 

. — 

2J3 

33 

33 r 

2.75 

July 9. 

2.5 

— 

73 - 

3.5 

— 

3 

— 

8 




Bank of Ireland 1 ) 2nd lot 
Davenports Brewery int. 

Hawkins and Tipson int. 

Hawtin Nil 

Holt Uoyd 1.67 

King and Shaxsotj 5.5 

Kwtk-Ht 

Lloyds and Scottish ink 
N. Midland Const. ... int. 

Porter Chadhurn 0.35 

Sec com be Marshall 14$ 

TR Technology Invest. 

Van* Breweries int. 

Warner. Esl int. 

Dividends shown pence per share net except where otherwise stated. 
* Equivalent after allowing for scrip issue, t On capital increased 
by rights and/or acquisition issues, t USM Stock. § Includes special 
anniversary bonus of 2p. t[ Plus additional dividend of 10.5p on 
account of year to March 31 1978. I| Irish pence throughout. 


Marginal rise 
by Davenports 


Seccombe 

Marshall 


Turnover of the Birmingham- 
based Davenports Brewery 
(Holdings) fell from £ 13.66m to 
£13.07m for the half-year to 
April 3. 1932, while pretax 
profits were marginally ahead at 
£624,000, compared with £617.000. 

Staled earnings pec 25p share 
edged up from 3.61p to 3.66p and 
the interim dividend is higher at 
lUlp (1.155p) net 


Profit aftertax and transfer ito 
reserve for contingencies -at 
Seccombe Marshall and Cam- 
pion, bill broker and banker, 
improved from £338,357 to 
£409.723 in the year to April 30 
1932. The board proposes a one- 
for-seven scrip issue. . 

The final dividend is un- 
changed at 12p. 'but there i s a 
special 60th anniversary ' pay- 
ment of 2p 


LONDON TRADED OPTIONS 


May IS. Total Contracts 
i July 


2,893 Calls 2,500, Puts 342 
Oct. Jan. 


Option 

Ex'rclaeGloidng 
price : offer 

Vol. 

Closing, 
offer . 

Vol. 

Closing! vol' I 1 Equity 

offer | Vo1 * I clone 

BP fci 

860 

66 

_ 

74 i 

3 


- ;si4p 

BP <c) 

300 

30 

. 1 

40 ! 

— • 

50 


BP ic) 

360 

13 



21 1 

7 

30 

s ! ", 

BP ipj 

SBD 

9 


10 i 

2 

— 

— 1 r* 

BP (pi 

300 

11 

4 

£2 ( 

— 

28 

— . ff . 

BP ip; 

330 

26 

30 

36 i 



42 


CU >oi 

. 130 

J4 

1 

19 1 

— 

15 ■ 24 136p . 

CUtd' 

140 

8 

— 

15 

4 

- * 19 • 

Cons. Gld ici 

390 

17 

— 

27 

4 

40 

- 377p 

Cons. Gld ici 

420 

10 

3 

. 16 l 

— ' 

25 

' II ' 

Ctlds. to 

70 

27 

13 

30 : 

__ 

— 

- ; 94 P 

CUds. ici 

80 

17 

22 

21 

— 

25 

5 

Ctlds. <c) 

90 

91? 

40 

13ici 

9 

18 

20 ! 

CtlriB. IC) 

100 

41, 

38 

. Blfi . 

— 

11 

23 i .. 

GEC la . 

BSD I 65 

4 

99 • 

— 

123 

- )887p 

GEC ICi 

900 

34 

1 

59 : 

2 

B5 

- r » 

GEC ip)' 

850 

12 

• 

is : 

10 • 

33 


Grd Met (c 

200 

24 

2 

29 | 

1 

.36 

- [ai7 P 

Gr'd Mot. id 

220 

20 

57 

15 

13 

20 


GPd Met ip) 

200 

9 

25 

9 

— 

12 

— 1 

Grid Met Ip) 

220 

11 

21 

18 I 

10 

-20 

— i „ 

iCl <ci 

330 

IS 

28 

24 ; 

4 

32 

- |324p 

ICI ici 

360 

5 

— 

10 1 

36 

— 


ICl <pi 

500 

6 

12 

10 i 

10 

13 


ICI ipi 

530 

18 

42 

22 • 

10 

26 


Land Sac. (o 

280 

20 

1 

32 • 

— 

40 

- 2S8p 

Land Stc. rci 

300 

11 

4 

23 

3 

29 


Mka & Sp. id 

130 

35 

16 

39 i 

30 


— Il69p • 

Mks & Sp. rci 

140 

25 

3 

29 i 

1 

32 

1 B| ' 

Mia A So. id 

ISO 

fir 

3 

13I?< 

5 

17 

— / » 

Shell (ci 

420 

19 

1 

25 . 


38 

- ;4i6 P 

Shell fp> 

560 

5 

— 

8 i 

30 



Shell ipi 

390 

s 

8 

22 • 


38 


Shod (pi 

420 

22 

40 

32 • 


40 

■— t ■* 



August 

November- 

February 

Barclays (p) 

420 

6 

— 

15 ; 

3 

— 

- :460p 

Imperial rci 

70 

32i=: 22 

- . 

— 

— 

- j 97p 

Imperial ici 

80 

2Ei; 

3 

34lj 

— 

— 


Imperial <e) 

90 

141= 

39 3 

16 l?i 

— 

20 

- t 


100 


1583 

10W 

45 

13 


Imperial Ipi 

100 

61” 

83 

Si?: 

— 

gt„ 

2 l‘ M 

Laamo <c) 

300 

55 

J 

67 i 

— 

- 

— l337p 

Lasmo (ci 

350 

57 

4 

50 ; 

— 

68 


Laamo (oi 

390 

14 

3 

— * 

— 



Lonrho cc> 

70 

6 

1 . 

2 1 * 1 

4 

9l S 

. - ! ?op 

Lonrno 'cj 

80 

2>tl 2 

4 I 

14 

61= 

•- i „ 

P & O ICJ 

140 

11 

4 

15. I 

SO 

33 

- ;i49p 

P&O (Cl 

160 1 5 

54 

S ! 

11 

12 


Racal id 

330 

102 


115 i 

1 


- 42 lp 

RacaJ ici 

390 

50 

. 1 

67 

— 

83 


Racal <ci 

azo 

30 

' 2 

47 

— 

63 



460, 

U 

4 

23 . 4 


40 1 

. - 1 


420 

26 

3 

■ 33 ;• 


40 | 


RTZiei 

460 

IS 

' 38 

32 -r 

4 

■ 42- 

19 43 9 p 

VaaJ Rfs. Ic) 

50 

2 

- 

3’v 

7 

4 i 

- ;«46 


Stoti 


Kill? 


C-Call 


P=Put 


U’ 


YALE BO 

BRAZIL 


IO DOCE 


CARAJAS ISON ORE PROJECT 
INVITATION TO BID 
No. CA-010 


RAILS 

CVRD-Compaahia Vale Do Rio Doce, will purchase 32,500 MT 
Rails Type TR-6S, through International competitive bidding. 

CVRD is applying for a loan from the International Bank for 
reconstruction and development (World Bank), towards the cost 
of Carajas Iron Ore Project and intends to apply the proceeds 
of this loan to eligible payments under the contract which this 
invitation to bid is issued. 


Participation in this bid is limited to suppliers established in all 
member countries of the World Bank, as well as, in Taiwan and 
Switzerland. 


The instructions, specifications and forms which comprise the 
bidding documents will be available upon written. request to lie 
purchasing manager, accompanied by a non-refundable payment 
of U.S.$100 (One Hundred Dollars) or the equivalent in other 
currencies, until June 15, 1982, at the following address: 

Companhia Vale Do Rio Doce— CVRD, 

Superintendence De Compras E Material-Sumat, 

Rna Santa Luzia, 651 — 31 Andar, 

CEP 20030 — Rio De Janeiro— RJ, 

Brazil. 

Teles (021) 23205, (021) 21975 


Sealed bids will be received at the above mentioned address, 
until July 2, 1982, at 2.00 p.m., Rio De Janeiro Time. 

Each bid shall be accompanied by a bid bond for the amount of 
U.S.$250,000 (Two Hundred Fifty Thousand Dollars) or the 
equivalent in other currencies. Bid for partial quantities of 
Rails shall be accompanied by bid bond for proportional amount 

Rio De Janeiro, May 14, 1982 

Purchases and material superintehdehey— Sumat 







V.'-v 


V-" ' i 


V' ,c - 



•••• 





pm" 


!SL_' 


Financial Times Frida v Mav M 1SS2 


T£S> ; 

3.5 )4 »r : - 


Companies and Markets OK COM P ANY NEWS 

Vaux Breweries better 
than forecast at £3.5m 


London 
listing 
for Nabisco 


5?^ 


AGAINST EXPECTATIONS, a 

small sain in prefix profits was DQADn MPH'IMfiC of £2-J7m. against £2.4Sm. 
shown by Sunderland-based Vaux w After minority interests or 

Breweries for the 24 weeks to , fo-St-*. .. .sa- ?.:•••« *..,*■ K-.urvd £17.000, attributable profit*; 
March 20 1982. Profits amounted rl b -;" : " 0 emerged at £2.15m (£2.48m). 

to £3.47m. compared with £3A2m. :£,5S£3 D j££ :ibsorb £S9s -°W 


Nabisco Brands has been 
£938.000, leaving profits after tax granted a listing for its shares 


of £2.3 7m. against £2.4Sm. 


nn the Stork Exchange with 




on ^turnover £6.9m higher at o^: .„i lrt .. 

143.75m. ju rj jie 


After minority interests or effect from Monday May 17 19S2. 
£17.000, attributable profits Sponsors to the introduction are 
emerged at £2.15m (£2.4Sm). N. M. Kolliscluld and Sons and 
Dividends absorb £806.000 Huare Govett. 

i fgQg 000 ) t 

' The main activities of the ?*!"**p in Bl ?, r !? s iJfrt.riiiS 

l-raun are hmvinc nine nnrl HIslCIUV in Jlllj 19SI thrOU.h 


e °itib e 

rs «aU 


•arsbjjf^. .. group less dependent on the Ce "“i r ....... 

r'-'-rj? -^region's problems, says Mr c^/ 

^ ^icbolson. and the company is f rtl " 

•rift,. _ s ‘ I 'AM. • 


IK. , Tiw* w w;3 a ,d w. troup are brewing ales and him"« 

Trading profits, in the latter iwab !•**■ ta kjm ru.r.;v an :«•. Luier' bottlinn boors wines. the merger »f Nabisco witii 

nfJfcort^»n nlhe v« ? M U p 1 , :jlA spirits and minerals; wholesaling Standard Brands. Nabisco 

picked up, says Mr Paul taebo!- todu v ^,1 re tai]i»g; hole) kevtiintr Brands has bid 115p in cash or 

*wn- chairman. Hotel bedroom 4< i«ter.RK- m .. crevun. Gr«»<t ownership and operation of lWp In s,,aw? s for each share 

and beer sales outside the north "i'££ p . ^ ^ public houses and off-licensed in Huntley and Palmer, valuing 

east were better, be adds. CdsT^ ?«;«.*■* ".S' o?n»: premises. that company at ffiSm or £85m. 

The moves of the past few -i M.iuyns. _ The Monopolies Commission i-> 

years into hotels and brewing * comment duo to report on the bid by the 

outside the north east make the . FUTURC DATES Vaux lias surprised the market o£ September. 


The Monopolies Commission »■> 
due to report on the bid by the 


Vaux lias surprised the market ent * o£ September. 




- fit if the economy recovers. 

At the last annual meeting in 
■■ February tfic chairman had 


Cc?ri-i) S 

. vr; 

19 



tr.2/ 

:4 

fit-isr? {T h t."iii * 

. ,'ur.e 

18 

CiMUijI VV Hi-,- 

. Mbjt 

ZJ 

H*rr:rfn 

. Mov 

ro 

L-.-r s • 

Jura 


V«ss?sn •; „..o 

UiV 


FiOais.— 

A-tr.r -j C--: 

. J-»-« 

e 


-.of the year had not been good, , 
• and that, after taking mia f.- 
aecount increased interest co^ts. « 
pre-tax profits would probably 
be some 10*15 per cent behind 
f'lasi year’s. --.y. 

There was an interest char pc __ 
this time of £442.000 against , . 
income of £110,000. ** _ 


from turnover of £SCm. 

Overseas Mr Xicholsun says 


El Oli „M • 


with be tter-th no-expected figures 
’ ;* and the shares took on lOp tn 

. ,-ure is the day to reach a high for the 
mb t zj year vf 348p. The company 
” ov managed to hold the drop in 
* .n beer volume to 6 per cent whieli 
■' is very near llie lndusLry 
. j i-vs e average- At the same time, it 
tony has propped up margins through 
!-! strict cost controls and pro- 


Hawtin 
£ 125,000 
in the red 


.. duclivity improvements. Hotels ^ , ... . „ 

Ci.-!: T-.-TP 1 i..iir M have staged an unexpected re- WITH TURNOVER faJiDn front 

!-!.:■ u-.y jur* a eovery and should provide at Ill.Hm to U.44m Hawiln, manu- 

vbv so least rJ.Siu trading profits for faclurer and distributor of pro- 
IB the year, a significant increase t«*Uve clothing and suScry oquip- 

■ ■ ■ . ■ on last year. London Inter- menl, finished ilie S'car to 

cnmc r.cv ivar.” national, ulnoc, should kick in January 31 1982 i. 1-5,000 in the 
ujis lake :n najv 1.1 £0.5 m which will amply cover red at the pre-tax level, compared 
lizg fur ’.lit: London *Ls finance costs. The American with a £270.000 profit previously, 
’.a! llotei :aqu;r..*it on brewery will make a £200.000 The company was already 
So far. Mr .\ic!:u2sno l0¥S IJ,is y ear - but Vaux experts £122,000 in deficit alter six 
held ii a:ie;<d of its it t0 tnrnround in 19R3. The montlis. against a surplus cf 
company looks on course to com- £329,000 for the corresponding 


u - 

•itiil ciiriu- ri-.ii'- 

1 T.i 

:?.T tear.” 

Tt.e 

rj-vulta lake 

:n 

paly l-i 

dj>V 

iraili=“ for 


Landun 

Ir.tern: 

'Mena: Hotel 

:--LQu:r«.-d on 

March 

5 a far. Mr .* 

tichulsno 

•?:i y:., r 

licit'! i-i ; 

asse. 

i'U of 

r«reva- 




BvsU 

!t\ j'r»»Li llie 

i'O 

bur eenl 

ii'jtriljj. 

: :a T ynv Tit 

s *1' 

•■li'Vl.sion 


the Belgian brewery did well. v ; ^ P Sj'tvn Luuvjni 
especially taking into account it:»* Frc-ta*"* nn.ii> v.ct- r- rut-1; 
state of that ecnnnmy. The :,frer * conmbu'ir.ii rrorn 
American brewery made a ..sioci.;!*-, i::h mac »<f i'tiT.OOU. 


L“*c TCU. l-Uii J I'UI a Aartllil UK V" . - . 

tax profits. This means that tliv . Ful1 p f^ 0 J P 

*hares tride on a fully- Lived given as 0—4p (0.3-p carninfisj 
multiple of around 10, which and Ult dividend is being passed 
s; rut-1; dors not seem overly demand- t0.25p net), 
from ms. Prospects of an improved The pre-tax lots was after 


loss but there are signs that Tax it Situ compared with S per cent, 

Bestobell sees improving trend 


w Mr A. B. (Sandy) Marshall, the 
t chairman of BeslobelL told the 
? annual meeting he anticipated 
1 that (he group wnuld hold stead) 
f for the first half of U10 current 
► year and could look with tome 
s. confidence for an element nf 
t improvement io the second six 
* months. 

J* He said that the integration nf 
f Armtec Industries, the U.S. 
i electronics company acquired in 
j; February for $7.5m (£4.0Sm). 
r had proceeded smoothly and 
t that tiie company was expected 
T; 10 contribute effectively to group 
j! profits in 1982. 

Beferring to the group's UK 


uu:-ini'-.'i the chi.n:a T . said he 
was ‘jea.:i:r.:g incrca-MngJy con- 
fident i-i;- fore Use l-Yik lands 
dUptiie ::Pd -.nil believed the 
underlying position had not been 
affected adverse!) . He liupcd the 
group -.rould “* ;.e** 3 roniinuation 
0 ! the steady, aJboii sJch, im- 
provement m UK trading." 

The groups U.S. mtei-esi^, he 
pmnteii out. were enhanced by 
Armtec and il was honed that 
this would at least balance the 
slowdown in civil aviation 
activities. 

He added that it may be there 
will be j,ume incr.ra-e in offtake 
for ntfliia!?' and other aerospace 


Difficult short-term task for Currys 


*; IN THE very short term, Curry's ness prospects in the short term, group’s investment will continue. 

Group, the domestic electrical it must be said that eonditons are Currys is committed to expand 

s appliance retailer, has u ditficult expected to camtinue to be further its rental operation, the 

- task to increase profits. However, difficult Retail price inflation on Bridgers Discount chain, and the 


final give a yield of more than interest charges of £l92.uno 
S per cent. (SUSJDDO). There was a tax- 

credit of £14,000 1 £75.000 1 
leaving the net deficit at £111,000 

unrr fi*Anrl (£345,000 profit). 

1 1 1}' I rtvllll EIxtra ordinary debus mulled 

O £399,000 (£210.000). These com- 

prised goodwill written off 
interests. ... „ £214,000. surplus on the redemp- 

Mr Marshall said Australia tinn of debentures £1,000. surplus 
showed signs of coming out of on Die sale of properties £48,000 
the difficult position of last year nnri closure and reorganisation 
but South Africa and Zimbabwe cns ts or £234,000. 
hotli faced more difficult trading 1110 directors say trading in 
eonditons in 1982 and that the the second half remained at a 
company did not look for as depressed level, oariicuiariy in 
much growth there as in recent December and January when 
years. trade was affected by the severe 

Europe, however, had started weather. Increased losses 
the year well. occurred In both the manufaciur- 

Ho told the meeting that it ing subs id ary in Louth and at 
was planned to increase the the engine reconditioning off- 
authorised share capital to shoot in London, and the group 
£5.6Sm which would give the sustained a net loss of £18,000 
group an opportunity for further during this period, 
acquisitions. Steps have been taken to dose 

the factory at Louth and to 
transfer its operations to E. D. 
v-|» t 11T*1*¥7C Hollingworih and Son. Also. 

9K V> IIA I JiJ agreement has boen reached for 

* the sale of the engine recondi ton- 

group’s investment will continue, ing company, with any losses on 


the sale included in the extra- 
ordinary items. 

OCA pre-tax losses were 


the group enters the new year Currys merchandise is very substantial business conducted £245,000 (£49.000 profit). 


- with enthusiasm and plans to 
!■ ^continue to expand operations. 


small and while there is a 
general expectation of an iro- 
- prove mem in the economy, the 


outside the group by its service 
subsidiary, CGS. 

Expansion of the traditional 


- g n ax i raise opportunities and im- -provement in the economy, the Expansion al the traditional 

i -prove performance, says Mr chairman says it may be .some Guriys chain of shops continues. 

'■ Dennis Curry, the chairman. time before thi* benefits the A major task for the future will 

1 He tells members in his annual retail trade. be replacing units with bigger 

r . statement that looking at busi- Looking to the future. Hie and/or better shops. This pro- 

; . — gramme will take several years 

- ; ■ - - ■ . ----- to complete. 

► • • ht/it /v»t 1 a « ^-f wx rv iTih a The group looks forward to 

;; ANGLO VAAL GROUP W sssusl bwl re!ul,s 

j /\\M As reported April 20, group 


Electrical and 
Industrial 
at £660,903 


ANGLOVAAL GROUP 


£m 


DECLARATION OF PREFERENCE DIVIDENDS V 

DIVIDENDS HAVE BEEN DECLARED payable to holders 
of preference shares registered in the honks «:f the under- 
mentioned companies at the close of business tin 28 May jyS2. 
The dividends are declared in the currency of the Republic 
of South Africa. Payment from London will be made in 
United Kingdom currency and the date for determining the 
rate of exchange at which the currency of the Republic 
will be converted into United Kmadoni currency will be 
S June 1982. or such other date as -et i:ul ia the conditions 
subject to which the dividends arc paid These conditions can 
be inspected at the registered office or uhici* of the London 
Secretaries of the companies. Warrants in payment of tiie 
dividends will be posted on nr about 30 June I9S2. The 
transfer books and registers of members of the luinjianies will 
be dosed from 29 May 10 4 June IPKi, both day* inclusive. 
All companies mentioned are incorporated in the Republic of 
South Africa. 


The group looks forward to Profits after tax for Electrical 
producing the best results and Industrial Investment fell 
possible in 1982. from £963,766 for the 15 months 

As reported April 20, group to March 31 1981 to £660,903 Tor 
pre-tax profits for the year ended the year to March 31 1982. 
January 27 1982, fell by £lra to The final dividend of this cora- 
£11 27m. Turnover, comprising pany, which is wholly owned by 
cash sales and receipts from the BET Group, is 405p, making 


credit and rental trading, reached a Total of 605p (825p). 


£279. 3m (£261.17m). 


Earnings 


deferred 


Group shareholders funds at ordinary share were shown as 
the year end were up from lower at 652p (952p). Net asset 
£65.81m to £73.32m. Fixed assets value rose slightly from £138.44 
totalled £5Q.14ra (£38.53m), while to £140.67. 
net current assets decreased from Tax took £288,813 (£335.442' 

£3 1.49m to £24J!9ra. The amount added to retained 


Meeting, Ealing, W. June 7 profits fell from £127.391 to 


12.30 pm. 


£46,803. 


EUROPEAN OPTIONS EXCHANGE 


May 

VoL 1 Lost 


Aug. 

Vol. < Lut 


Nov. 

Vol. | Loot 


Name of comoanv 


Ous or share 


li. «.ne ns Brti£i« 

: Aitiounr 
Number 1 ow snot* 
1 runs 


:...i 


ADOk)V3*l United j 6°, CumulJtiifi- rriircrnsble 

I DTcicrcwe 

Anglovaal United 5% Cumulat.vo r« wraiWc . 

j suca.-td onjlrrcscp . 

Middle WKtntersnmd i 8*1 Rcdecmsole Oimuui-tf . 

(Western Areas) Limited | preference . 




- 

-.'til - : 


London Secretaries: 
Anglo-Transvaal Trustees Limited 
295 Regent Street 
London W1R 8ST 
13 May 1982 


B> order uf *hc boards 
Anglova.nl Limited 
Secretaries 
per' E. G. D. Gordon 
R-.OiiiieTL'ii Office: 
Anslovaal House 
56 Main Sireel 
Johannesburg 2001 


□OLD C 5300 

COLD C S326 

COLD C S550 

COLO C «7S 

GOLD C S4O0 

GOLD P 8300 

GOLD P 8326 

GOLD P 8350 

GOLD P 5376 

12S< NLB1 B7-BL 
C F.1 12.501 
C F.116; 
C F.117.50! 
P F.107.6O| 
P F.110; 
P F. 112. 50 
P F.X1&I 
10^4 NL 80 86-B6 

c f.ioo; 

1H« NL82 88-02 
C F.102.SOI 
C F. 107.601 
10 NL 82 88-89 
C F.10OI 
C F.1O2.S0I 


- 10 
- 100 


— j — j a U.ou 


I 2.60 ) _ 


2 1 

[ ID 

I 2.40 [ 

15 


200 

I 0.60 1 


^ j 

20 

1 *•“ I 


1 

— 

1 - 1 

S 


3.30 AiF.116 

2 t „ 


- IF. 102.60 


- jF.B6.70 




THASSIS 

THE THARSIS PUBLIC LIMITED COMPANY 

The Annual General Meeting of the Company will be 
held on Monday. 7th June, 1982. ac Nunez de Balboa. 
120 Madrid 6- The following features arc from the circulated 
statement of the Chairman, Mr. Frederic Velgo. 

The profit after taxation of £315,076 compares favourably 
wish that of the previous year and the Directors propose 
an increase in the dividend to 2J0 pence per share. 

The Company's trade of exporting pyrites produced by 
Compama Espanola de Minas de Tharsis, S.A. continued at 
a satisfactory level, 310J8I tons being exported compared 
to- 251,472 tons’ in 1980. 

Economic conditions in Spain however severely curtailed 
land development and the sale of houses and the only 
income from land in 1981 was from rent and from the 
sale of agricultural produce. 

A start has been made in 1902 in the sale of the 
Company's stock of houses but progress is likely to be 

riow. 

Pyrites shipments have continued into 1982 at a 
satisfactory level md prospects for the remainder of the 
year appear reasonable. 

The Directors recommend payment of a dividend of 
2J5 pence per share (inclusive of. any tax credit or tax 
deduction) in respect of the year. 


ABN C 
ABN P 

AKZO e 
AKZO C 
AKZO C 
AKZO P 
AMRO C 
AMRO C 
HEIN C 
HEIN C 
HEIN C 
HEIN P 
HEIN P 
HOOG C 
HOOG C 
HOOG P 
HOOG P 
KLM C 
KLM C 
KLM C 
KLM P 
KLM P 
NEDL C 
NEDL C 
NEDL C 
NEDL P 
NEDL P 
NEDL P 
NATN C 
NATN C 
NATN C 
PHIL C 
PHIL C 
PHIL C 
PHIL C 
PHIL P 
PHIL P 
RD C 
RD C 
RD P 


.60 4 4,60 A - — 

'.60 10 1.60 B 17 3 

.BO — - 20 2.60 

'.66 - - — — 


F.30O, 3 

F280 10 

F.25 66 

FJ37.50 
F.30 58 

F.27,50 25 

F.SO 

F.65 - 

FJ55 3 

F.60 4 
F.65 10 

F^O 

F.66 - 

F. 17.50 — 

F.20 10 

F.15 19 

F, 17,50 — 

F.100 IS 
F.110 68 

F.120| 30 

F. 90] ID 
F.100 18 

F.120 5 

F.130 13 

F.140 25 

F.110 22 

F.lBOl - 
F.I30,’ £8 

P.llOi 3 
F.116 - 

F.120 - 

FJZOl 20 
83 

F.2S 68 
F.27.50 6 

F -22.50 100 
F.2B - 
F^o no 
F.iod 26 
FJOi 26 


July 

3 I 3.60 


jF.63.70 

IF.62J20 


10 I 0.30 
10 I 0.60 


— .F.103.B0 


illJO | 

, 0,80 Al 


MANN C DM.140! — ~ 

MANN C DM,160 - - 

5IEM C DM.340 “ — 

VW C DM.1501 - “ 

TOTAL VOLUME IN CONTRACTS: 

A ~ A&Xod B— BW 


Aug. 

4 5 

10 1^0 
10 1.60 
10 5 

3765 
C— Call 


IPMS2I.S0 
•DM 148 


7_Sj I 





Interim statement 

SKF Group sales for the first three months of 1982 amounted 
to 3,671 million Swedish kronor (Skr), 9% higher than the 
corresponding 1981 period. Profit before exchange differences 
was 244 million kronor (255). 

Rolling bearing operations and other precision engineered 
products faced a continued weak market. Squeezed price levels 
and rising costs affected the profit margin for the period. 

Comparison tobies including the financial year 1981: 


& fkr=: million Swedish honor 

Net sales 

Other operating income 

Operating revenge 

Cost of goods sold 

Selling, administrative £nd 
R&D expenses 

Operating income before 
depreciation 


January 1 to March 31 
1982 3981 

Mkr % Mkr % 
3,671 100.0 3,366 100.0 


5,693 5,587 

2,480 67.6 2.268 67^4 


758 20.7 637 1S.9 


455 12.4 


482 14.5 

119 3.5 


Scheduled depreciation 120 5.5 119 

Operating income after depreciation 555 9.1 565 10.S 

Financial income and expenses— net -91 2.5 -IPS : 

Income before exchange differences 244 6.6 255 

Earnings per Paren t Company share, Skr 5.80 6.10 

Capital expenditure, Mkr 100 95 

Average number of employees 49,590 51,895 

Group sales by product field* Mkr % Mkr 

Rolling bearings 2,610 67.4 2,540 6! 

Steel 650 16.8 570 1! 

Cutting tools 150 5.9 140 I 

Other products 460 11.9 420 1 

Total 5,870 100.0 5,670 101 

* &iZes figures include internal deliveries between the product fields. 


100 

49,390 

Mkr 


-IPS 

255 

6.10 

95 

51,895 

Mkr 


2,610 67.4 2,540 69.2 

650 16.8 570 15.5 

150 5.9 140 5.8 

460 13-9 . 420 1L5 

3,870 100.0 5,670 100.0 


Jan 1 to Dec 51 
1981 

Mkr 9b 
15,570 100.0 

140 

15,710 

9,246 eia 


1,719 12.7 

465 5.5 

1,254 9-2 

-449 5.5 

805 5.9 

19.20 

622 

50,452 

Mkr °.o 

10,140 69.7 

2.1S0 15.0 

540 5.7 

1,690 11.6 

14,550 100.0 


C— ~ N 

fove) THE SOUTH AFRICAN BREWERIES LIMITED 

V J .. .{incorporatedin the RepublicofSouth Africa) . 

Preliminary results and final dividends for the year ended 31 March 1982 


COMMENT 

Earning* 

Earnings attributable to ordinary shareholders 
ref lect a satisfactory rmprovemen r of R46 m ill ion or 
38?i. A significant part of this improvement was 
derived from the Groups beverage interests where 
a 21% beer sales volume increase was a major (actor. 

Asanticipatedintheinferimrepbrt.thegrovvthin ' 
earnings in the second half of the financial year was 
. considerably slower than that achieved for the first 
half, reflecting the impact of the slowdown in overall 
economic activity. However, the growth in turnover, 
which was marginally outpaced by growth in 
operating profit, was well ahead of the est i mated 
monetary growth in private consumption 
expenditure of 20% for the y ear under rev iew. 

FIWdMWtS 

The increase in fixed assets reflects, in the main, 
substantial capacity expansion in the Beer Division, 
ongoing revaluation adjustments totalling R45 
million and a net R6 7 million in respect of the recent 
investments in Scotts Stores Limited (Scotts) and 
Edgars Consolidated investments Limited (Edcon). 

Baals of eoMoHdatlsa 

The investments in Scotts and Edcon have been 
dealt with m these financial statements on an equity 
accounting basis. Net attnbuf able earnings tofa/ting 
some R3 million have been brought to account, 
being the estimated, earn ingsapp 1 1 cable to these 
investments from the effective dates of acquisition, 
after taking account or notional i rueresz on the 
purchase considers! ions from these effective dates 
up to the dates of settlement. 

The excess of the pu rchase considerations over the 
net book value of Edcon and Scotts at the dates 
of acquisition, a total of Rl2t million, has been set 
oH against the share premium of R126 million 
arising on the issue of new shares. 

Ordinary share capital 

During March, a total of 26 847 £37 shares was 
issued in part settlement of the acquisition of the 
con trolling interest in Edcon. bringing the total 
number of shares m issue at 31 March 1982 to 
249 252 667. These new shares have not been 
included in the calculations of earnings per share 
for the financial year to 31 March 1932. 

In terms of an offer made to acquire the remaining 
shares i n Edcon, the documents in this regard to be 
issued at the beginning of June 1982, a further 
3 789 5GQ ordinary shares will be issued aspart 
considers! ion. These shares will be entitled to rank 
tor the final dividend in respectai the year to 
31 March 1982 and, accordingly, provision has been 
made in the income stafeme rj for the further 
d hndend that would become payable in terms of this 
offer. 

Dividend 

In fhe interim report it was announced that the 
dividend payout for the year to 31 March 1982 
would be reduced to approximate! y45fi. A final 
dividend at 24.0cents per share(1981 -20.5cents) 
has been declared, making a total for the year of 
34.0 cents and representing an increase of 26% 
overthepreviousyex 

Prospects .... 

Little or no growth in economic activity is expected 
in the coming year. Furthermore, interest rates am 
predicted to remain highand companies will have to 
contend with increased corporate tax rates’. 

Against this background, your Directors predict a 
modest rate ol powth in earnings per sharein the 
coming year. 

For 2nd on behalf of the Board 2 Jan Smuts Avenue 
F J C Cronie (Chairman) Johannesburg 2001 

ft J Goss (Group Managing Director) 12 May, 1982 


FINANCIAL RESULTS 
Consolidated Inconi* statements 

The unaudited results ofThe South African 
Breweries Limited and its subsidiaries for the year 
ended 31 March 1982 are as follows; 

1982 1981 Improve- 

■Pm Rm mwrtX 

Turnover 3 037,4 2 375.3 *8,7 

Operating profit 
before interest paid 

and taxation 311,8 239.0 30,8 

interest paid 40,7 27.3 


Dividend income 
and attributable 
earnings of 
associated 
compamesand 
subsidiaries not . 
consolidated 

Profit after taxation 

Attributable to 

outside 

shareholders 

Reference 

dividends 

Earnings 

attributable !o 

ordinary 

shareholders 

Extraordinary 

items 

Ordinary dividends 
Retained eammas 

Earning per 
orCmaiy itiare> 
feenrs; 

Dividends per 
ordinary share 
fcems.i 
Interim 
Final 


311,9 

239.0 

30,6 

40,7 

27.3 

271,2 

211.7 

‘28,1; 

93,1 

77.1 

178,1 

134,8 

32^3 

35,9 

28.S 


210,0 

163,4 

31,6 

44,5 

39,3 



3.4 


167.0 

120.7 

38,3 

6^ 

0.9 


82 

60.0 


OOJO 

61.6 

47,6 

75,1 

543 

38, 3 

10,0 

6.5 


24,0 

205 


344* 

27,0 

25,9 

222405 

222405 



DECLARATION OF FINAL DIVIDENDS 

NOTICE IS HEREBY GFVEN THAT on 12 May 1982 
the Directors declared the fol lowing final dividends 
bn account of the year ended 31 March 1982 
payable on or about 7 July 1982 to shareholders 
registered on 28 May 1982: 


Ordinary shares 

A final di v idend of 24.0 cents per share; which 
together with the interim dividend of 10.0 cents per 
share paid on 30 December 1931, represents a total 
for the year of 34 ,0 cents per share (last year s total 
d ividend 2 7 ,0 cents per share). 

Preference shares 

Flnardividends calculated in respect of the six 
monthsended 3l March 1982: ••• i’ 


Nominal value Dividend 
per share per share 

R2.00 6,2 cents 

Wfid \ 3^ qents 

" R1.00 4,0 cents 

R1.0Q 3.S cents 


62/j cumulative 

7.0% convertible 

redeemable 

cumulative 

8.0% redeemable 
cumulative 

7,0^ cumulative 


Ordinary shares - 
f 0C0s} 

(effective numbers 
on which 
calculations 
are based) 


ComolM« t i4t wl » n e« rt — b 

31.3-82 31.381 

Rm Rm 

Ordinary 
shareholders' ■ 

equity . 887 511 

Preference capital 48 48 

Outside 
shareholders? 

imprests 205 163 

Tbtal 

- shxjrehoteers’lunds 921 722 

Lcng term and 

deferred liabilities 410 277 


Fixed assets 
Current assets 

Total assets _ 
Current liabilities 


' Gearing rath 
tflforest bearing 
debttototai 
shareholders funds 

Returns 
taxed operating 
profit as a 
percentage of net 

assets 

Attributable profit 
asa percentage of 
ordinary 
sherehofcteS' 

equity 


The foregoing dividends are declared in the 
currency of the Republic of South Africa. Warrants 
in payment will be posted on or about 7 July 1982 
to Members at their registered add resses or in 
accordance with their written instructions and will 
be despatched from the office of the transfer 
secretaries in Johannesburg to all payees except 
those to whom payment will be made from the office 
of the London Secretaries of the Company 
(Bamafo Brothers Limited, 99 Bishopsgale, 

London EC2M 3XE). 

Any instructions which wifi necessitate an alteration 
in the office tram which payment is to be made must 
be received on or belore2B May 1982. 

Payments from the of nee of the London Secretaries 
of the Coni pany will be made in United Kingdom 
cunency.calculated by reference to the rate of 
exchange ruling oh 21 June 1982 orata’rate not 
materially different therefrom. 

South African Non-Resident Shareholders’Tax at 
.therjteof 14,03°., and United Kingdom Tax will be 
deduct cd from the dividends whereapplicable. 

TheTfcmsfer Booksand Registers of Members in 
respect of the shares which are the subject of this 
nolicewill be closed from 29 May tofiJune 1982, 
both dates inclusive. 


By order of the Board 
BCWaigel 
Group Secretary 


2 Jan Smuts Avenue 
Johannesburg 2001 
: 13 May 1082 


Copies of (WsRaviaw and the Report «nd 
Accounts arc obtainabls from tire London 

Secretaries: Barnato Brothers Limited, 

99 Bbhopsgata, London EC2H3XE. 




Financial Times Friday May, 3.4 1982 ■ 


Companies anti Markets 


COMMODITIES AND AGRICULTURE 




apore asked to support Further 
on tin smuggling in sugar 

* o Bv Terrv Povev 


in sugar 

By Terry Povey 


BY WONG SULONG IN KUALA LUMPUR 


MINING MINISTERS of Malaysia is faking a hard line 
Malaysia. Indonesia and Thai- on tine because it feels that 
land meeting in Kuala Lumpur consuming countries are no 
today Mill ask Singapore to help longer interested in cooperating 
in enforcing the tin export con- with producers to see an effec- 
trol restrictions announced by t 1 '"® International Tin Agree- 

the International Tin Council. . __ . . 

, The -current Malaysian view Is 
. A senior Malaysian official t hat evea if sufficient votes are 
said an increase ot smuggled gathered by June 30, to put the 
tin into Singapore _ can be g^tb ITA into operation, the 
expected in the coming weeks pact is unlikely to be very 
as mines in the three countries effective without U.S. participa- 
try to circumvent the quotas tion. and with the erosion of 


given to them by passing on producers’ confidence by the 


their surplus tin to smugglers, continual sale of tin from the 


Last week. Malaysian customs u.S. stockpile. 


seized a boat on its way to Richard Cowper in Jakarta 


Singapore and discovered more w^tes: with just over six 
than $ 400,000 worth of tin, on weeks to go until tile deadline 


which export duty had not been f or ratification . of the agree- 


paid. 

Malaysia, Indonesia and Thai- 


land, which account for 65 per 1 
cent nf the world's tin exports. V 


ment. a sizeable number of con- 
suming countries, including 


India, Spain and the whole of 
the Comecon bloc with the 
exception of Poland, have yet 
to sign. This means that the 
65 per cent of consumer 
country votes needed to get the 
agreement off the ground has 
not yet been readied. 

Professor Dr Subroto said in 
Jakarta that there was no sense 
of urgency over the new agree- 
ment. and that there should be 
a concentrated Asean effort, 
either in the form of a joint 
mission or by individual minis- 
ters, to persuade Comecon, in 
particular, to sign. 

Professor Stfbroto said that 
Indonesia bad now accepted the 
fact that the U.S. was not going 
to join the agreement and 
that even without the world's 
biggest consumer .it could work. 


cent of The world's tin exports, 
want Singapore to help in curb- 


ing this smuggling because the ^ EEC remains divided on 
extra, tm put on the market whet j, er t0 authorise the Inter- 


would only serve to depress natjona , Tm CanncU /rrc> 


prices further 


Under the ITC decision last more funds to finance his pur- 
month. the seven tin producing chases, ITC delegates said, n 


countries are to hold back 4.500 London yesterday. 


tonnes, or 15 per cent of their 
output to the end of June. 


Other subjects to be discussed once again at its meeting today. 


during the two-day ministerial Ai this week's EEC meeting 


meeting include a review of the In Brussels. France said it is 
current tin market situation, concerned about the effect 


and Malaysia's proposals for a interest charges on loans will 
tin producers association and a have on the value of buffer 


joint marketing organisation stock contributions, the dele- 
designed to lessen the influence gates said. 


of the London Metal Exchange 
on tin prices. 


EEC divided on buffer borrowing 

rIE EEC remains divided on stock manager suggested bor- 
tiether to authorise the Inter- rowing Uie • equivalent of 8,000 
itional Tin Caen til /ITC) tonnes- of tin, increasing the 
buffer stock manager to borrow buffer stock buying capacity to 
ore funds to finance his pur- 50.000 tonnes, 
lases, ITC delegates said, n Producers mostly favoured 
>ndon yesterday. borrowing up to 6.000 tonnes 

The Council may therefore but at ^ EEC meeting Britain 
ve to postpone its decision argued 15.000 would be a more 
ice again at its meeting today, rea ]i 5 ti C figure in view of the 
M this week's EEC meeting world’s surplus. 

Brussels. France said it is _ - . Wac . ______ 

ncerned about the effect Britain and West Germany 
terest charges on loans will said they favoured a reduction 
ve on the value of buffer of the International Tin Council 
jck contributions, the dele- floor price which currently 
tes said. stands at 29.15 Ringgit per kilo. 

At a council meeting in Yesterday’s price in Penang 
radon last Friday the buffer was 29.45 Ringgit. Reuter 


The Council may therefore 
have to postpone its decision 


Raw sugar' futures fell again 
yesterday after the London 
Daily Price was set in the 
morning at £109 per tonne, 
£4 easier than the previous 
day’s fix. 

Traders say that prices had 
fallen through chart resist- 
ance levels in after-hours 
dealing on Wednesday. This 
caused the heavy selling at 
yesterday's opening they 
added. 

-Continued pessimism over 
the consequences of the U.S. 
import quota decision is still 
the main reason being given 
by dealers for the fall 

October raws closed down 
£4J25 at £122.975 per tonne . 
Futures were generally lower 
by £5.30 to £5JB0. 

• Poland's sugar beet farmers 
have contracted to sell more 
than 15m tonnes of beet this 
year to the sugar industry, 
similar to the quantity sup- 
plied for 1981, according to a 
Warsaw radio report moni- 
tored by the BBC 

The report said 'the area 
allocated for the crop this 
year is 493,000 hectares. This 
compares with the area 
planted last year of 480,000 
hectares, reports Reuter. 

Sowing is well advanced in 
the west and south-west areas 
of the country, the report 
said. 


At a council meetiDg in 
London last Friday the buffer 


Rise in apple 
prices expected 


in U.S. farmland values 


BY NANCY DUNNE IN WASHINGTON 


THE VALUE of U.S. farmland 
plunged last year, most severely 
in the corn belt, sending another 
signal that the American farm 
recession is deepening. 

As a whole, the index of aver- 
age value per acre of land fell 
1 per cent the first decline in 
the index since 1954. Even more 
ominous, the consumer price in- 
dex gain of 3 per cent last year 


caused the real value of U.S. 
farmland to drop by roughly 9 
per cent, according to Depart- 
ment of Agriculture statistics. 

Since February 1980, the real 
value of farmlands in the corn 
belt has declined an average of 
19 per cent, compared with a 5 
per cent decline for the rest of 
the country. 

The states hit hardest on the 


average value index are: Ohio 
-with a 15 per cent drop, Indiana, 
13 per cent, Delaware, 10 per 
cent, Illinois, 9 per cent and 
Pennsylvania and Georgia, both 
with 8 per cent decreases. In- 
creases occured in Texas, ug 17 
per cent, and California and 
West Virginia, both up 10 per 
cent 


BRITISH COMMODITY MARKETS 

HAQI7 MITT AT C Uad— Morning: Cash £312: thn 

iVIXi i ilLJ menthx F324. 23. 75. 26.5. 27. 20.5. 7 


BASE-METAL PRICES were generally 
easier on the London Maul Exchange. 
Lecd attracted heavy speculative, 
chartist, computer and U.S. soiling 
which was more than offset bv sub- 
stantial trade buying interest. Conse- 
O'Jtn Hi* forward metal, which fell to 
£222 at one point, rallied strongly in 
late trading, aided by the doclme in 
sterling, to close the late Kerb at £229. 
Biter CZX. Coppar and line {lipped 
and rallied to close at ES32 and E4J6.5 
respectively, while buffer stock support 
in Fanang saw tin steady ot E7.Z15. 
Aluminium closed at £561.25 and nickel 
at £2 367.5. 


Uad— Morning: Cash £312: three 
months £324. 25. 26. 26.5. 27. 26.5. 27. 
26. 23.5. 25. Kerb: Three months 
£223. 25.5. 25. Afternoon: Three months 
E~26. 25. 24.5. 24. 23.5. 22. 22. 23. 23.5, 
24. Kerb: Three months £325. 26. 27. 
28. 20. 29. 29.5. 29. 28. Turnover: 

21.275 tonnes. 

a~m. T*or p.m. |+or 
TIN ] Olfiolnl 1 - Unofficial, -t 


£556. 56.5. 56. 55.5. 55. 55.5. 56. 55.5. 
Kerb: Three months £555.6. 6. After- 
noon: Three months £57. 56.5, 58. 57.5, 
58. 58.5. 59. Kerb: Three months 
£559.5. 60. 60 5. 61. 61.5. 62. 61.6. 
Turnover 10.9k) tonnes. 


GRAINS 


I a.m. 

+ orl 

Official 

- 1 


: a.m. ;+ or> p.m. •+ or 
COPPER | Official | - Unofficial — t 


High Grade £ £ ! £ £ 

Cash i 7085-65 +6 7080-90 

S months! 7325-55 -3.5 7215-30 !— 7.5 

Settlsm't 7095 +6 . — | 

Standard! : I 

Cash 7085-95 + 6 7080-90 i 

3 months 7220 5 —10 7215-30 '—7.6 

Settlem't; 7095 +5 - | 

Straits E., tS29.54 +0.14 i 

NewYork - > 


Spot 287 5J30,+22.6' 8895 -900 1+22.5 
3 monthsj 29402 +1BJ| 2960-5 1+22.5 


jYesterd'yei +or lYest’rd’ysi +or 
Mnthl close • — 1 close ■ — 


Nickel — Morning: Three months: 
£2.943. 40. 41. 45. 41. Afternoon: 
Three months £2.960, 70. 75. Kerb: 
Three months £2.965. 70. Turnover: 
312 tonnes. 


I £ | £ £ ; £ 

HlghGr de 1 1 

Cash 647.5 8-1 13 85 1.5 -2. 5—2. 75 

3 mthc 376 .6 *-10.5| 880-1 1-2.75 

Settlem't 843 I- 11.5! — 

RsithnrlAa I 1 I 


Cathodes 
Cash 839-40 


5 months B69-.5 -11.2 87S-.5 >-3.25 


Tin — Morning: Standard: Cash E7.C95: 
three month* £7,230. High Grade: Three 
months £863.5. Kerb: Standard: Three 
months £7.220. Afternoon; Standard: 
Three months £7.220. 15. Kerb: 

Standard; Three months £7.220. Turn- 
over: 3.340 tonnes. 


SILVER 


U.S. Prod J — i — I *78-81 : 

Amalgamated Metal Trading reported 
that in the morning cash higher grade 
traded at £848; three months £876. 76 5. 
77. 77.5. 77. 77.5. 73. 77.5. 77. 76 5. 
Cathodes: Cash £841; three months 
£369 5. Kerb: Higher Grade: Three 
months £876, 75.3. 76. Afternoon: 
Higher Grade: Three months £878. 77.5, 
7S. 79. 79.=. 30. 89 5 Cathodes: Three 
months CS73. Kerb: Higher Grade: 
Three months E3S0 5. 81 81.5, 82. 81.5. 
Turnover: 44.825 tonnes. 


ZINC 

a*m. i-f or p.m. j 
Official j — [Unofficial] 

Ff-or 

—t 


£ l £ | 

£ 

£ 

Cash 

408.5-.7S-S.76l 

40^9 

-1.25 

3 months 

414-.5 ,-2.37; 

414-.29 

1-1.62 

S'ment... 

408.75 -5.7ft; 

— 


Primw't* 


•35 



Silver was fixed 0.3o an ounce 
fowsr for spot delivery in the London 
birMion market yesterday at 362.2p. 
U.S. cent equivalents of the fixing 
levels were: spot 665c. down 4c: three- 
month 688.9c. down 4.6c; six-month 
711.7c, dawn 5.5c: and 12-month 
761.1c, down 6.3c. The metal opened 
M 361 -364p (664-668C) and dosed ot 
263-3G6p [663- 667c). 


Zinc— Morning: Cash £409, 8.5; three 
months £414, 15, 15.5. 15, 14.5. Keib: 
Three months £414. Afternoon: Three 
months £413. 13.5. 13.25. 13.5. 13.75. 
14. Kerb: Three months £415. 16. 
Turnover: 11.200 tonnes. 


SILVER Bullion + 
per fixing 1 

troy or. price j 


or[ L.M.E. |+or 
— ! p.m. | — 


troy or. i prioe j j UnoMe'lj 

Spot 3 62 .20 p ,-UOi 365.OOpL-2.9fi 

3 month*. 375. GOp ,-l,70| 376.75p +2.5S 
c — .iu. .xoa on* ..1 id 


6 months. 384.80p r-illb 1 — 
ilmonths , 4 09. 85p —2.16! — 


I a.m. |+ ori pTm. f+ or 
LEAD j Official j — (UnoTflclalj — t 

1 5 i £ 'i £ l~ 


Afumfnm a.m. 1+ or' p.m. !+ or 
Official 1 — | Unofficial: — f 


| S , £ i £ I « 

Cash ) 311-3 -10.2, 310-11 [-3 

3 months! 325 .5 -3.57 323.5-4 —3.5 
Settlem'ti 512 .-ID; - 

U.S. Spot - 1 *26-8 


I £ ! £ I £ ! £ 

Spot i'533.5-4 l-2.fi |53G.5-7.5 : + ,5 

2 months! 556.5-6 j—2 558.5-9 ;+.5 


LME— Turnover 75 (80) lots of 
70.090 ozs. Morning; Three months 
374.5. 74.2. 74.3. 74.2. 74.1. Kerb: 
Untraded. Afternoon: Three months 
375.0, 75.5. 76.5. Kerb: nil. 


Aluminium Morning: Three months 


COCOA 


INDICES 

FINANCIAL TIMES 


DOW JONES 


Dow ; May I May [Month Year 
Jones : 12 ■ 11 ago ago 


May 12 May L'l Month agoOTear ago 

£4^15 , 242i55~i 245 . 30 i 252.77 
(Base: July 1 1952 = 100) ' 


Spot 1185.60 Jl25.85 128.17, — 
Futr*a : 128.78 ^129.16 1132.72- - 


Futures connnuod to ease in mixed 
trading conditions (or prices «o trade 
at the recent lows, attnough some 
Jobber short covering at the dose pared 
earher losses. Actuals business was 
again dull, reported G*H and DuRgs. 

cticoa iVasYday s' r or ; Business' 
GOCOA . Close ) - | Done 


RUBBER 


(Base: December 31 1974=100) 


MOODY'S REUTERS 

May l2;May il'Month ago! Year ago May 12]May 11 | M'nth ago Year ago 


May 1 933-34 ,-8.5 1 936-23 

July ...» i 961-62 —10.01 963-55 

Sept.- • 989-90 [—8.0 991-84 

DOC. I 102S-S6 '-9.0 i 3029-19 

March ....... i 1056-58 1-8.5 | 1060-51 

May : 1075-80 ■ — 7,5 I 1080-78 

July . . . - 1090-1100'— 8.5 I - 


The London physical market opened 
steady. J mac led litrie interest 
through the day and closed easier. 
Lewis and Peat tacorded a May lob 
price for No. 1 RSS in Kuala Lumpur 
of 2C5.C0 (3C4.75) cents a kg and SMR 
20 181.0 (180.0). 


i r : 

No. 1 | Yost'r'y# } Previous I Businas 
R.SA close j close ! Done 


1008 J 100 8 ,8 1 1002.9 j 1073.9 
(December 31 1931=100) 


1576^ : 1577.1 1 1608.6 ' 1684.0 
(Base: September 18 1931 = 100) 


Sales: 2-433 (2.004) lots of 10 tonnes. 
ICCO — Daily prices for May 73: 78 72 
(80 38). Indicator price lor May 14: 
80.56 (80.82). 


June : fi4.BQ.B4.60' 55.90-fi4.00l — 

July ; 51.80 -54 .90. S4.6044.70j 56.00-64^0 


COFFEE 


I In spite of industry scepticism at the time ofits launch in 

April 1981, the London. Gas Oil Futures Market has proved 
a huge success — with contracts ■worth 89 billions changing ; 
hands in. the first twelve months of operation. 

Where has this business come from? And^ wfty? How has 
the market reacted to political pressure and to changes in the 
price of physical product? And what is the outlook for prices 
over the months ahead? 

You’ll find considered answers to all of these questions in 
the'Gas OH Futures Review’— a new in-depth report from 
leading I.P.E. brokers Inter Commodities Limited. For a 

complimentary copy simply return the coupon. 

r- To Julian Rigby, Inter Commodities Limited. 3 Llovds Arams, 

I : Telephone: OX-481 9S27 London EC3N 3DS ' 

Please send me a fieeospy of ‘The Gas 03 

1 9gsJ§rtE Fubites Review* together with details of fT Ij 


A law advance m New York ho- 
dircad a steadier ogening resorts 
DrexiH Burnham Lambert. Gems of 
C15-E17 were me: by strong trade 
resistance which ba4;ed the rally, 
though the market remained buoyant 
in tmn volume, despite late profit* 
taking. 

[Yeiteerday'si j 

COFFEE Close 1+ or Business 

| — j — Done 

» per tonne! 


Jly-Seoti 5«.EO-S4JD. S4.GD-fi6.00i 65.QO-MJO 
Oot-DeC 66^10- 5fi.S0 56.40-66.501 57.00-56.00 
Jan-Mar 58.CO-5SJOI 68.10-EBJ0 68.50-55.00 
Apl-Jne 60.00.60.10; 59.80-59.90 60J»-59,90 
Jly-Sept' 6l.7O-61.B0i 61. SO- 61. 70 61,70 
Oct Dec 61.60-63.70 S5.6O6J.60 6S.4D 
J'n-Mehi BSJKC-SS.ac! 6fi.GO G5.40. GS^O 65.10 


Sales: 290 (318) lots ol 15 tonnes, 
42a |2) lots ol 5 tonnes. 

Physrce-l closing puces (buyers) 
were: Soot 53.50p fsome): Juno 
51.75p (S2.25g): July 52.7Sp (53.00p). 


SOYABEAN MEAL 


May I 1164-58 1-3.5 11172-53 

July 1141-43 +5.5 115841 

Sept 1106-09 !+-4 JO 1180-03 

Nov_ i 1087-90 — O.S [1097-85 

January 1079-80 '-1.5 11092-80 

March 1070-76 |-+- 1.0 1075 

Ma y - 1065- 75 - 7.5 

Sales: 217 (1.937) lots ol 5 tonnes. 

ICO Indicator prices lor May 12: 
(U.S. cents per poundi: Comp, daily 
1973 121.28 (121.93): 15-day average 
122.77 (122.83). 


The market opened wth ymail gains 
in light trade, reports T. G. Roddick. 
Prices remained steady with lack of 
selling and short covering firming 
prices at the dose. 


lYesterdya + or' Business 
Close . — [ Done 


£ 

-per tonne 


GAS OIL FUTURES 


In thm cand-tron s the market 
steadied throughout tiie mom mg on a 
firmer physical market, rallying further 
on the New York opening to roach the 
highs in mid-afternoon, reports Premier 
Man. 


yoursemccs. 


Uame 

Address 


| Yest'day'k + or I Business 

I elola l — ! Dana 


June. 1S4J04U.2 +O.SS- Jil.SO 

August. | :65.0C-53.« +0.65 lJi,M-32.BO 

October ; I55J0-55.7 -*■ 1JM 16J.M-6J.50 

Dec „! 1S6.60-S7.0 +-0.S0 

Feb ! 140.IKU 1.0 +0.75. — 

April J l«a.6fl-44.0 +QM _ — 

Seles: E4 (4S3) Irvts ot 109 tonnrs. 

SOYABEAN OIL— The rnarkot opened 
USS3 higher on comm,« ion house 
buying and advanced to show gains 
of up to USS5 belore trade selling 
oared gains. Ctoamg prices (US S per 
tonne): June 515.00-14.00. Aug 515.50- 
0860. Oct 517.09-14.so. Dec 520.00- 
17.00. Feb 5Z3.00.Z3.C0. Turnover: 107 
( 100 ). 


Telephone Home: 


, 1 IlikQ )MMODITTES I JM ITK1) 

' ^mgpgii sfm r anciM . -. 


May 

June^ 

July 

August ; 

Sept. 

Oct. 

Nov... 

Deo 

Jan — 

Turnover: 

tonnes. 


| 3UX ! ! 

iper tonne) 1 

298.00 i— 1.00 :m 1.0M8JW 
. 293.00 ,+BJS;a93JMB.Iffl 

289.60 ] - 2^5 231 JN -86.60 

290.00 ( + 2 JOB. 230iM7.M 

.! 291.25 .-2^6 291.50-88.00 
: 294.00 r 1^0 294.60-92.46 
. 296.50 1.60! — 

. 298.50 1+1.00- — 

298.50 -2.69. - 

: 1.839 (1.6^6) tore of 100 


SUGAR 


LOW ON DAILY PRICE— Raw sugar 
£113.00 (£118. CO) a «mno c'«f May-Jiine 

sbipmont. While sugar daily price 
C147.00 (£143.00). 

Heavy trade selling dcmmeied the 
opening when ortcaa fan some 250 
points btHow overnight levels. Later 
ties ring houses sup'ioss liouidacicn 
caused further tosses of around 350 
po-nts. butt these were recovered 
la:cr. leports C. Czarmkow. 




FARMER’S VIEWPOINT 


All depends on the 


THE ONLY certain quality of 
the British weather is its un- 
predictability. After one of the 
nastiest winters for some time, 
culminating with about six 
inebest of rain in early 2«arch 
things suddenly changed for 
tbe better, and I was able to 
sow 300 acres of barley and 
oats in near perfect conditions. 
Including some 80 acres of 
autumn sown crops which had 
suffered from a mixture of rook 
damage, frost lift and water- 
logging, and which I had de- 
cided would not survive. 

Redrilliog a crop is always a 
matter of fine judgment. It 
costs quite a' bit in seed and 
fertiliser and there is always 
a possibility that a crop Gunned 
out by the winter will recover. 
In tbe event I am glad I did. 
One area to which I had given 
the benefit of the doubt is still 
very thin and is obviously not 
going to yield at all well. The 
bare patches will add up to 
quite an acreage, and will un- 
douteefty fill with weeds. 

Travelling around the coun- 
try I have seen many such 
fields which had they been mine 
would have been replanted, par- 
ticularly in the Cotswolds. 
There is no doubt that in my 
owq case I am to some extent 
responsible because sowing was 
late due to the- appallingly wet 
aut umn . If I had sown the win- 
ter barley and oats in last Sep- 
temperis drought, instead of 


waiting for moisture, they might 
have survived- 

T5ie autumn sown wheat, how- 
ever late it was planted, has 
come through very well and this 
has given me the notion that 
the explosion of winter barley 
production could prove to be a 
temporary phenomenon. 

When I first started growing 
it five years ago it seemed to 
be the answer to a fanner’s 
prayer, providing a high yield- 
ing, early ripening cereal But 
since since then it has developed 
a variety of diseases, and has 
shown itself to be susceptible 
to an early summer drought in 
a way in which wheat is not, 

My spring sown barley looks 
very well indeed so far, being 
planted in a very good tilth in 
the last ten days of March. But 
the soil on ray farm is fairly 
strong and moisture retentive. 
In other parts the spring sown 
crops are showing distinct signs 
of drought stress. This is not 
surprising in view of the 
virtual drought which has 
persisted over much of tbe 
South of England for the last 
four weeks and even longer in 
some areas. I did enjoy, about 
an inch of rain last week, but 
the sunshine and strong winds 
are drying it out again. 

Spring moisture is absolutely 
essential to crop development 
This is the time when all 
crops are making maximum leaf 
growth and unless this is 


furnished either by rain or 
irrigation, the demand for 
moisture will soon desiccate the 
soil around the roots. A guide 
to crop prospects are tbe 
fortunes of cricketers in May. 
If any batsmen make a thousand 
runs' in the month they will 
have been enjoying bard dry 
pitches and bowlers tolling 
fruitlessly away. 

Thanks to the uncertainties 
of weather forecasting, no one 
knows what is going to happen 
in a couple of days, let alone 
three or four weeks. So fanners 
are left to guess-work and 
superstition. The commonest 
belief is that if the oak trees 
are in leaf- before the ash 
there will only be a splash of 
rain, while the . reverse will 
mean a soaking. 

I don’t believe it myself, but 
for the record my oak trees are 
well in leaf while the ash are 
still winter bare. Another old 
saw is that if rooks nest low, 
they are anticipating a drought. 
They are certainly nesting low 
in parts, but thanks to the 
virtual destruction of the elms 
there are few high trees. 

The dry weather has certainly 
restricted, pasture growth and 
the prospects for heavy cuts of 
hay and silage are beginning to 
look doubtful, particularly 
where pastures had been grazed 
earlier on. These conditions 
have certainly assisted the 
development of what appears 


to be a very good lamb crop. 
I have seldom seen so many 
lambs, and they are all in 
thriving condition Sheep do 
particularly well in dry weather 
as long as they get enough to 
eat, and as long as it is still 
growing, short grass is much 
better for them than long. 

Mine certainly look well and 
this week I have marketed a 
few which were bora in the 
last days of February. These 
were single lambs which had 
plenty of milk from their* ewes 
which have had a very good 
spring. I would say that if 
these conditions are main, 
tained. there . will be record 
marketings by the end of June 
when sheep farmers will look 
for the increased support they 
are due under tbe EEC scheme 
to come into effect, once the 
Ministers have settled their 
differences in : Brussels. 

Overall though it is not 
Brussels but the weather which 
determines a farmer’s pros- 
pects. Writing in mid-May I 
would put the Wheat crop as 
reasonably safe, and very pro- 
mising. Wint er barley, like the 
curate’s egg. is good in parts. 
But the grass and the spring- 
sown crops including sugar 
beet, will soon be showing signs 
of stress. What is needed is a 
period of bowlers wickets or 
even of rain stopping play. 


John Cherrington 


By Our Commodities Staff 
LOW CROPS in England and 
France and reduced supplies 
from elsewhere are likely to 
push apple prices up a further 
5p or lOp per pound in the next 
few weeks according to the 
Fresh Fruit and Vegetables 
Information Bureau. 

Although both South Africa 
and New Zealand have had good 
crops, supplies from both 
Australia and Chile wfll be ait 
half of last year's levels. The 
English crop last auturnn was 
20 per cent down on. normal and 
the French 12 per cent. 

Total apple supplies to the UK 
could be as much as 35 per cent 
down over this summer with 
stocks already low, say whole- 
salers. 


Lower rubber output sought 


Argentine meat 


KUALA LUMPUR — The 
Malaysian government should 
start tapping holidays, to re- 
duce output, and introduce 
rubber export quotas to stop 
world prices sliding further. 
Malaysian Rubber Producers’ 
Council chairman. Mazlan 
Jamaluddin, said here yester- 
day. 

Mr Maz lan also urged the gov- 
ernment to take the lead in a 
large baying operation through 
the Association of Natural 
Rubber Producing Countries 
(ANRPC1 to prop up the cur- 
rent depressed market 

He said the International 


Natural Rubber Organisation 
(Inro) had failed to come to 
grips with tbe reality of low 
prices and high production 
costs. 

Commenting on the Inro Coun- 
cil’s decision at the weekend 
to lower Inro’s buffer stock price 
range by 1 per cent He said 
consumer members had^shown 
"complete indifference to the 
needs of producers, especially 
smallholders.” 

The council agreed on 1 per 
cent though the Inro-adminis- 
tered International Rubber 
Agreement (Inra) provided for 
an automatic 5 per cent reduc- 


tion based on the current low 
prices. 

The producers, led by Malay- 
sia, had pressed strongly for a 
symbolic cut d much less than 
1 per cent, and after the meet- 
ing Malaysia said producers will 
hold an emergency meeting to 
discuss their future participa- 
tion in Inra. The meeting will 
probably be held late next week. 

He said invitations had been 
sent to all members — Malaysia, 
Thailand, Indonesia, India, Sri 
Lanka, Papua New Guinea. 
Singapore and Vietnam, and 
other exporters are expected to 
be invited as observers. 

Reuter 


output lower 


WASHINGTON — Argentina’s 
1982 cattle slaughter is projec- 
ted at 13.8m head producing 
2.79m tonnes of meat (carcass 
weight equivalent) compared to 
14.7m head last year which- pro- 
duced 2,955m tonnes. The U.S, 
Agriculture Department officer 
in Buenos Aires said .in a field 
report dated May 5, that meat 
exports this year are projected 
at 500.000 tonnes based on 
recent sales to Egypt and Israel 
and strong exports during the 
first quarter of the year. 

. Domestic beef consumption 
this year is forecast at 2.3m 
tonnes, down from 2.44m last 
year. Reuter 


GOLD MARKETS 


OW wop wheat and barley un- 
changed. New crops up 10. Of d crop 
trailed easier all day with commaTCie! 
shipper selling. New crn>3 traded at 
good volumes to dose with wheat 25 
down and barley 5/2 3 down. A oW 
reports. 


No. 4 Yesterday! Previous Business 
Con- cIom < clou [ dons 
tract I 


PRICE CHANGES 


In tonnes unless otherwise stated. 


£ per tonne 

Aug.... .'117.10- 17.20;1Z1.30-28.00 , ,122.00-Ifi^6 
Oct...„.i1Z2-S6-2S.00127J!0-27.85.'1Z7.a.2US 

Jan H26.fiO-Z7.fiD 1S0.M-S1.b0 125,00 

March 13S.8^54.0D!1B8. 10-38.20 15B.2MZ.2B 
Msy.....|l37^B47.7B; 14 1.2B42JW, 141 JIO-35.75 
Aug__. 142.7MS.Mh4fi.6O-47.O0l 144.00 
Oct '148.00-43.00 146.00-62.00, - 


) May 13 ,+ or Month 
I 1982 — ago 


May..! 120.10 +0.25 1 112.20 -0.40 


July„; 123. IB '+0.051 — J — 

Sept.' 109.15 j+0.40l 104.85 -0.26 

NoV-.i 113.00 1+0.40; 108.80 —0.20 

Jan...: 117.05 ;+0.46' 113.00 -0.15 

Mar.. 120.50 +0.3S 116.10 '-0.25 


Business done— Wheat: May 120.60- 
120.10, July 123.95-123.20. Sept 109.75- 
109.20. Nov 113.60-113.00. Jan 117.65- 
117.30. March 120.55.120.50. Sales: 
251 lots ol 100 tonnes. Bailey: May 
1 12.60-1 12JD. Sept 105.20-104.85. Nov 
109.10-108.80. Jan 113.00 only. March 
116.35-116 25. Seles: 109 lore ol 100 
tonnes- 


Sales: (2.020) lots ol 50 tonnes. 

Tate and Ly’e delivery price lor 
granulated basis white sugar w»s 
£374.00 (same) a tonne lob lor home 
trade end £21450 (£218 CO) lor export. 

International Sugar Agreement (U.S. 
cents per pound) lob end stowed 
Caribbean ports. Prices lor May 12: 
Dady price 8.24 (B.53); 15-day average 
8.60 (8.68). 


SSuminlum ifiBiOieis 1 'raioisn 

Fro* MJct -687B/1 BOB 8JD05/C36 

Copper..... j I 

Cash h grade.. £852.0 I-2.7B £869 

3 rrths £880.5 j-2.76lfa97.76 

Cash Cathode.. £844.6 -2.6i£864.25 

3 retire £873.26 r -3.25£893.26 

Gold troy oz ....'6332 ( _,|8S63.26 

Lead Cash „.!£310.5 1—3.0 £323.5 

3 mths £323.75 j-3.Mf336.75 


i—3.25 £893.26 
I IC563.26 


Nickel £3974 £3926 

Free mkt. [2351366* |246/27Se 


COTTON 


LONDON GRAINS— Wheat U.S. Dark 
Northern Spring No 1 14 per cent. May 
10/June 10. 110.75. June 109.25. July 
107.50 transhipment East Coast eeWers. 
English Feed lob June 12350. Sept 
113.50. Ow/Dec 117.50. Jan/Mar 
123. GO East Coast. Malta: French May 
137.00 quoted transhipment East 
Coast seller. S. African White/ 
Ye How Junc/Juty 86. CO. Barley: 
EngUsn Feed lob May 117.00 paid, 
May/June 118.53. July/Aus 1G7.C0. 
Oc-r/Dsc 113 50 sellers East Coast. 

HGCA— Lpceuonal en-lsrm spot 
prices. Other miling wheat: S. East 
120 60. 3 West 121.60. N. West 

122.03. Feed barley: S. East 113 63. 
S. Wesl 113.3a V/. Mids 111.50. 
N. West 113.50. The UK Monetary 
Coefficient lor the week boginning 
Monday. May 17 is expected to remain 
unchanged. 


LIVERPOOL — >Spot end shipment eeies 
amounted to 94 tonnes. AltBr very 
heavy huying earlier tfiia week, some 
reaction was to be expected, but 
interest: remained widespread. Ain can 
growths attracted attention, as did 
certain North and South American 
styles. 


Platin’mtr oz’y £260 ! £260 

FreemKt. £168.50 £201.40 

Quicksilver! ... 5360i376: |S376r5BS 

Silver troy oz...362.20p — lJ5Q426.75p 

3 rrths. 373.60p -1.7D439^5p 

Tin Cash £7085 [£7158 

3 mths ...£7217.5 -7.6 £7372.5 

Tungstan&D lb] 8 106.98 J? 120. 3 2 


Gold showed, very little change 
in quiet London bullion trading. 
It rose $1 to close at $331f-332| t 
after opening at the same level. 
The metal was fixed at $331.75 
in the morning, and S331 in the 
afternoon, trading within a very 
narrow range throughout, touch- 
ing a high of $3313-3324. and a 
low point of $330L-331i; 

In Paris tile 12J kilo gold bar 
was fixed at FFr 64,500 per kilo 
(S335.47 per ounce) in the after- 
noon, compared with FFr 64,500 
($335.76) in the morning, and 
FFr 64,300 ($336.06) Wednesday 
afternoon. 

In Frankfurt the 12| kilo bar 
■was fixed at EJtf 25,560 per kilo 
(S333 per ounce),' against 


DM 24,475 (5334.90)' previously, 
and dosed at S330}-331$, com- 
pared with 5331-332. 

In Luxembourg the 12} kilo 
bar was fixed at the equivalent of 
$332 .per ounce^ against S333.50. 

In Zurich gold finished un- 
changed at 5330-333. 


LONDON FUTURES 

Month 


. : E per troy ! I 
i ounce j 

August I 189.SO-G.n4l.IOal 1B7.OO-35.50 

Sspt'mb'rf 1B8.«L8.BS;+ 1.02ft' - 

October... 100.20-80.40,40.750; 180.60 
November! IBI.BO-M.ilWI.MB: - 


Tumovor: 774 (825), lets ol ICO 
troy osb. ■ 


Tin Cash '£7085 1 [£7158 

5 mths £7217.5 (-7.6 (£7372. 

Tungstan&D ib| 8 106.98 !_ J?120.32 

Wolfrm ZL4|0bs8106ri 10 I [0102/107 

Zinc Cash.. £408.5 -1.26 £411 

3 mths '£414.125 Li JB £413.1 


O old Bullion (One ounce) 


Close 83 3 1*4-332 'a 

Opening »;S831)J-332ij 

Morning fixing _,S33 1.75 
Afternoon flxmgil331 


(£181 V182M 1*331X8-332 lj 
(£18QJ«-18im 1*3513* -332X4 
(£180.623/ 1*333.50 

(£181.023) - 9331.50 


|£180X*-1B03() 

(£180-180li) 

(S1B0337) 

(£180.222) 


WOOL FUTURES Producers. ...Ib860/90o[ , *868/880 


LONDON NEW ZEALAND CROSS- 
BREDS— Close (in order: buyer, seller. 
business). New Zealand cents per kg. 
May 360. 375. ml: Aug 094. 398. ml; 
Oct 4C6. 407. 407-405: Dec 410. 412. 
412; Jan 412. 414. ml: March 421. 423. 
an-. May 428. 433. nil: Aug 439. 443, 
nil: Oct 441. 448. ml. Salas: 13. 

SYDNEY GREASY WOOL— Ooaa (in 
order: Buyer, seller, business] . Aus- 
tralian cents per kg. May 566.0. 569.0. 
568.0-567 5. July 653.0. 555.0, 554.0- 

552.0, Oct 526 0. 527.0. 526.0-525.5. 
Dec 527.0, 528.0. 527.0-527.0. March 

531.5. 532.5, 533.0-532.5. May 535.0. 

538.0. unuaded. July 543.0, 544 0. 543.5- 

543.5. 0« 642.0. 543.0. 542.0-542.0. 
Sales: 94. 


Oils 

Coconut /PhIR )s490u 

Groundnut ,S650u 

Linseed Crude! t 
Ralm Malayan IBSIOv 
S eeds 1 

Copra Ph lip ...!S350 
Soyabean (U.S.)-*27? 
Grains 

BarleyFut Sep£104.B5 

Maize £157.00 

Wheat Fut-luly £123,16 
No£HardW1nt * 


t 10 *605 
J86B5 


Krugerrand. i*341xe-342>4 

1/2 Krugerrand... * 176-177 


L".:.'.!:*502.5 

\ !*540 

1+1 1*272 


I— 0.26'£103.75 

l+IUtfXlM 

-0.8ftpl28.50 


1r4 Knigerrand...!S89ifr-90i« 
1<16 Krugerrand ;&56ij-37ia 

Map|Bloaf„ 2341-343 

New Soverelgns..SS0U-80*4 
Xing Sovereigns. 'S94J?-95 >s 
Victoria Sova— ... S94i2-96ij 

French 20s„ S68-7B 

60 pesos Mexico: S406 lj-409 
1M Cor. Au8trta.|S323'325ia 
*20 Eagles *450435 


(£187la-187J*) 
(£96^.97/ 
(£49-49X3) 
(£20-201?) 
(£187-187 If) 
t £44441,) 
/£51i,-52 U> 
t£5U«-521«) 
(£371,425,) 
(£222 1,-2241, 1 
(£177-1781?] 
(£235*1-238 1£) 


1 * 34113 - 543 X 3 

.81 751,-176 1, 

! *89 It -90 la 

1*36-37 
:*34Ue-343ij 
';*B01»-B11| 
1995-96 ■ 
1*95-96 
*69-79 
S408U-411 
!9323X3 -326 
*432-437 


(£1853,-1863, 
rCOSX^-SS^,} 
(£481349),) 
(£191- -20) 
(£1853,-1865,) 
(£433,-44>4) 
(£51 Xf-53> 
(£5118-52) 
(£37lj43) 
(£222-223 Lgl 
l£176-177U) 
(£235-237Xi) 


Other I 

commodities' 

Cocoa shlp’t* j£992 
Future July £96 1.5 


£373.5 

— ?B.0|*£S73.5 


AMERICAN MARKETS 


POTATOES 


Coffee Ft' July£U36.s £1173.3 

Cotton A.lndaop77,30a +0.13)71. 16c 
Gas Oil June... 1*293.00 +3 Js!Uff8.73 


NEW YORK. May 13. . 
metals were featureless 


LONDON POTATO FUTURES— The 
market remained steady unU shortly 
balcie the doss, when al) values leH. 
striking stops to close Cl. 70- £2. 63 
down, reports Coley and Harper. 
Closing prices: Nov 68.50. —170 /high 
63.03. low 66.50); Feb 75.60. -180 
(h.qh 79.20. tow 76.60): April 89.C0. 
-220 (high 91.50. lew 89 CO): May 
100 00. -260 fhiirti 103. CO. tow 100.00). 
Turnover: 327 (465) lets ol 40 tonnes. 


Rubber <kilcl... 53.6p 
Sugar IRawi,... £109u 


Sugar (Raw/,... £10flu 
Woolt'psGfe Id. 1 39 Bp idle 
t Unquoted, v June, 
t Per 76-ib flask. * 
n Nominal. § Soller. 


awaamg the soluoon to the Falkland 52.00. 


60.30. Oct 50.00-56.52, Dec 56.80-56.60. 
Feb 53.80. April 50.70. June 51.60. July 


55p 

I — 4 £142 

r| — 1 |394pWIO 
u May-Juns. 
Ghana cocoa. 


cnais and finished fractionally lower. ttMeise — May 269V2GB 1 , (2704). July 


Copper recovered' from early losses on 277>2-277». (Z79»j), Sept 279*-. Dec 283- 
commission house profit taking closing -283*a. March 296^296X2. May 303V 


slightly lower. CoBee was mixed with Pork Collies— May 88.37 (90 37). July 


near-by months op on short covennq B7.32 (&9J2), Aug 85.47, Feb 73 ®- 
by local traders. Sugar remained under 73.95. March 74 30. May 74.00, July 


pressure from liquidation based on 74.70-74 90. Aug. 73.40. 


MEAT/VEGETABLES 


SMITHFIELD — Pence per pound. Beet; 
Scotch killed sides 83.5 to 87.3: Ulster 
hindquarters 100.0 10 104.0. Inre- 

q Jane's $8.0 to 60.0; Eire hindquarters 
99.8 to 103.0. forequarters 5S.0 to 58.8. 
Veel: Dutch hinds and ends 120.0 to 
125.0. Lamb: English email (new sea- 
eon) 98 0 to 106.3. medium (new soa- 
eon) 96.0 to 100.0. heavy (new season) 

90.0 to 9G.0. Imporuid: New Zealand 
PL 63.0 ro 64.3. PX 62.5 to 633. YL 

60.0 to 60.0. Port,: English, under 
100 lb 38.0 to 55.0. 100-720 lb 46.0 
to 530. 120-160 lb 39.0 to 60.0. 

MEAT COMMISSION...— Average Fat- 
stock prices at representative markets. 
CB — Carrie 103.06p per kg Iw (+0.20). 
UK— Sheep 202.4£p per kg ear dew 
(-17.4). GB— Pigs 79.C6P per kg Iw 
(+3.23). 

COVENT GARDEN— Prices for the 
built ol produco. in sterling per tect- 
except where otherwise stnied. 
Imported Produco: Or ang es— Cyprus: 
13-kq VaicrKi-i Lstos 2 50-5.50: JaHa: 
*0+g Sham nut. 50 5.50, EO 5 70. 75 
S 5*. 88 4.00. ICS 4 .80. 123 4.60. 144 

4.50. 168 4 50: Moroccan: 16-kg 

Valencia Lares 48/113 3.50.5 50 

Topaz — J jHq- 53 /ao 4.40-5.60. Lemons 
— Spin, a: trays 5-krj 40/50 1.40-1.80: 
JaHn: 16-kg 90/105 4.60-5.00: Outspan: 
15i : -kg 80/120 4.50-6.00: Italian: 100/ 
120 3,50-4.00. Grapefruit— U.S. : 16/ 
17-fcg. Florida Ruby 7.60-8.00: Cyprus: 
Smet canons 17- kg 3.00-4.60: Jaffa: 
20-kg 23 425. 32 4.45. 36 4.45. 40 
4.65. 48 4.95. 56 4 95, 64 4.7S. 75 4.50. 
83 4.00 Ortaniquw— Jamaican: 46/ 
113 3.00-5.00. Apples — French: Guidon 
Dei, clous 9-fcg 4,40-4.80. 18-fcq 8.50- 

8.50, Starker 1 ms on 10.00-1150: 
Australian; Granny Smith 11.50-12.50; 
New Zealand: 18-kg Cox’a Orsnga 
Pippins 14.00-16.00, Rad OrUctous 

12.00- 13.00: Chilean: 18-kg Granny 
Smith 10 50-11 50; 5. African: Granny 

Smith 12.00-13.00, Golden DbAciqus 

12. 00- 13. CO, Starker, nrs on 11.50-13.00; 
U S.! 18-kg Red Delicious 3.00-14.00; 
Tasmenran; Cox's Orange Pippins 18-kg 

12.00- 14.00. Peats — S. African; 15-kq 
Puckhem's Triumph 9.50-10.50, Beurru 


Bom 34-tb 7.60-8.50. Cornice 344b 
9.50-11.00; iutian: Per pound Passe- 
crassane 0.14-0.16. Poaches— Israeli: 
18/27 3.40-3 .80. Grapes — S. African: 
Barlinka 5.40. New Cross 7 50: Chilean: 
S-kg Thompson 7.50-8.00. Red 
Emperor 5.00-5.20, Axmeaa 7.20-7.50. 
Strawberries — Spa rush: 8-02 0.30-0.35: 


U.S. import quote limitations. Cocoa 
declined as ICCO intarvanton buying 
was inefleetive and the pound sterling 


was under pressure. Cotton came under 697 1 ,. 


f Soyabeans— May 656V656 1 ; (S65M. 
July 663-6631, (672 1 .-). Aug 665X1-667. 
Soot 6664. Nov 704-70. Jan 83. March 


pressure iri sympathy with the grams. 
Heating oil was moderately higher in 


Live Cattle— June 71.65-71.70 (71.85)'. 
A up 05.97-06.85 (06.72). Oct 64.10- 


rasponse to a reported drawdown in 54.20. Dec 64.40-64.50, Feb 64.15. April 


Blocks. 

qSihrer— May 662.0 (667.7). June 

666.5 (671.2). July 673.9-675.5, 5ept 


Italian: B-m 0.30-0.3S: Belgian: 0.4 0- ggoo-BSI .0. Dec 715.0-717.0i Jan 723.7, 


0.46. Melons— Senegal: Charentere 
7/12 7.0-8.00: Oirteen: 15- kg White 
5.00-6.50: Guatemala: 10-kg While 

5 50-6.00; Spanish: Ga^a 4. C0-6.00. 
Water-Melons— Spanish: 16-kg 6.00- 

7.00: U.S. 10.00. 


64.20. 

HSoyabsan Meal— May 190.7-191.0 
(192.S), July 190.6-190.7 (192.8). Aug 
19T 0-19t.?. Sent t4? fl CJm -IM t rii- 


March 740.2. May 756.7.. July 773.2. 
Sept 789.7. Dec 814.3. Jan 822.0. March 
839.1. Handy and Harman bullion spot: 
666.50 (665.00). 


• Gold — May 


1ST o-isr.r. sept isa.a om 192.3. dn 

195.3-195.4.. Jan 187.5. March 201.5, 
Mnv 205.0-205.5. 

Soyabean Oil — May 20. 14-20.10 
f?0.29). . July 20 53-20 60 (20.77). Aug 


Pineapple*— Ivory Coast: Each 0.40- 
1.20. Banana*— Colombian: 40-lb boxes 
9.20-9.40. Avocado*— Israeli: 3.00- 

3.40; S. African: 3.00-3.50. Mangoes— 
Kenyan: 8/16 4.00-5.00: Venezuelan: 
7.0 0: Mexican: 8.00; Mali: 5.00: U.S.; 
6.50-7.50. Tomatoes — Dutch: 6-kg "A” 
5.00. ■' C " 4.80-5.00: Guernsey: Pink 
5.00. Onion* — Chilean: 3/5 6.00-6.20: 
Israeli: 6-60: Dutch: 3.20-3.80, 


333.0-334.0 (335.0), July 337.1. Aug 
340.3341.1. Oct 347.3-348.0. Dec 355.4. 
Feb 364.0. April 370.8, June 378.8. Aug 
386.9. Oct 395.1.- Dec 403.4.. Feb 411.7. 

Copper— May 71.20-71.30 (71.40). 
June 71.75 (71.9S). July 72.70-72.80, 
Sept 74.50-74.60. Dec 76.90-77.00, Jan 


June’ 20.82, Sept 21.00. Oct 21 15-21.16. Dec 


21.47-21.50, Jan 21.65-21.75, March 
22.05; • May 22.50. 

1 Wheat— May 344V345 (344). July 
357V35SJ, (3564). Sent 373V Doc 394V 
3S4V March 4T1V411, MBy 4171. 

__ . ^VINNIPEG. May 12. 

SBarley— May 129.00 {131100). July 


S. ^LJSft 


GRIMSBY FISH— Supply moderate. 
Demand good. Prices at ship's side 
(unprocessed) pw stone: Shell cod 
E4.50-E5.50. cotMings C3.50-C4.50. large 
haddock E3.8CM3.QCl. medium £4.30, 


77.80. March 79 .40° May 81.2ft ' July « ~ \™%\- Oct 126.00. Dec 127JW, 

ES SsD^ajr Jan 87 - 35 * imSSbnm 13.5 per cent pro- 
*SSJSEj^3nSffiM-pi14K *5S I1 «“ cH Sf Lawrence 22D84 
Oct 318.0 (319.8. Jen 327,9. April 338.4. j i- •• 

July 343.9. Sates: 735. unfeU stated. *S par troy 

oESTRb WSSTHSS — - 

April 105.3-103.4. Salas: 62. 

Sugai^ — No. 11: July .8.10-8.13 (8.401, 

Sept 8.40-8.42 (8.681. Oct • 8.82-8.63. 






small £3.20- E3 .60. medium pJa+ce E6.00- Jan 8 94. March 9.60-9.62. May 9£5- 
£6.40, beat smaH E4.50-E6.B0. skinned 9.89. July 10.13-10.15. Sept 1020- 10 JO. 


tJ Cenrs pttr SB- Us bushel. f Cents 
per 60-10 bushel. |j S per short ton 
2.000 lb). §SCan. par metric ten. 
§& S per 1 .OCO ea It ♦ Cents per 
dozen, tl S per metric ton. 


r«-~ 

ssr- .. 


dogfish, large £7.00, medium £3.00-4.00, 
demon sole, large 610.00. medium £8.50, 
sal the &6O-E3.00. 


Sales: 7.393. 

Live Hogs — June 60.80-60 65 (61.30). 
July 61. 16-61. S (62.02). Aug 60.20- 




EUROPEAN MARKETS 


ROTTERDAM. May 13. 
Whee^(U.S. S per tonne): U.S. 
No. 2 Red Winter May 157. U.S. No. 3 


Jan 276.75. Feb 280.75. M»rch 283.76 
sellers. 

Soyameal— U.S. S per tonne): 44 par 


Amber Durum May 161. June 181. July . cent afloat 237. May 237. June 230.50. 


181, Aug 183. Sept 186. Oct 1891 Nov 
191. U.S. No. 2 Northern Spring. 
14 per cent. May 185, June 182. July 
179, Aua 179. Sept 181. Oct 183.5. 


July 237. May /Sept 237. June/Sept 237.“ 
July/Sept 237. N^v/ March 247 sellers. 
Pallets Brazil afloat 249-240.60, ctf 
Ghent 247. April 247. May 247. June 


Nov 165.5. Canadian Western Red 246.50. July/Sept 247, Nov/March 261 


Spring May 197. 

Maize— .(U.S. S per tonne): U.S. 
No. 3 Yellow afloat 136. May 133.25. 
June 132.50. July 132.50. Aug 120-131. 
Jan/March IK Belters. 

Soyabeans — (U.S. S per tonne): U.S. 
No. 2 Yellow Gulpons Oct 2S6.2S, May 
271, June 271.25. July 212 r Aug 273. 
Sop l 273, Oct 267. Nov 267. Dec 271 .75. 


sellar*. 

PARIS, May 13. 

Cocoa — (FFr per ICO kg): May 1005- 
1020, July 10S0-1065. Sept 1100- 11 06. 
Dec -1143-1148.. March 1190-1196. May 


Wednesday’s closing 
prices - 

NEW YOWC. May 11 
nCocoa— M ay 1635 (1706). July 181f 
(1670). Sept 1655. Dec 1702, M*rch 
1757. May 1737; July '1830. ' 

Coffee—" c " Contract: ..May 141.08 
(139.19). July 127.00-128,35 (124.35), 
Sept 120.80-121. SO, Dec 118.00-118.15. 
March 113.75-114.00. May 108.00-1 12.00. 
Seies: 2.450, - 

Conan— No 2; July 68.5QJ60.6O 
(69.35). Oct . 71 -2D>71 .38 (71.80). Dec 
72.41-72.60. March 74.40. May 75.40- 
75.80. July 78 -40*76.80, On 77.77-78.00. 
Salsa: 4.500. 

Orange Juca M ay 118.00 (118.75), 


f: 


1216-1220, July 1245-ISO. Sales at July 122.40 (122.55), -Sept 125.50, Bw 




127.00-127.10. Jao 128.10-128.35. March 


Sugar— (FFr per tonne): Aug 1480. 129.60. May 130.90-131.10. July 132:20* 

1470, Oct 1440-1450. 132.40, Sepri 33 50-13? Tors etos: 1.200. 












I 





Financial Times Friday May 14 19S2 


UK FINANCE FOR TECHNOLOGY 


if; 

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ohn 


Insurance companies’ Cogent plan to fill the gap 

By Barry Riley 


•THE CITY of - .London's love 
affair wiih tnclmoloa 1 can go 
through' some decidedly dison- 
■chaTited phases, at veil as soma 
•moments of sheer bits*. Fur 
'even' ..risks’ stampede for 
•Amershara International there 
can he counted a number of 
Tailed venture capita! MprciM's 
? .Vow a new scheme has been. 

=devised to' bring money and 

<:.'deas together. If *uecossful. it 
could provide* thf> money fo 
-develop projects ranging oH the 
^way from clinusl monoclonal 
i antihody assays (for diagnosis 
of viral infection j on the one 
;hsnd to energy-saving serns- 
.•solid metal shaping technology 
^eliminating the need for 
■ machining) on she oiher. 

= After all the complains over 
.the years that the City v.a* 
failing to provide adeouaic 
backing for smaii cnTerpnst--s. 
-especially in loehnoloiitcal 
areas— cr it u: ism that reached ;« 
peak around the ume of the 
•Wilson Committee ' Report — 
-many financial irtsl tuitions 
.moved to fill this supposed gapi 
They included banks, insur- 
ance companies, pension fund?, 
.-investment trusts- and s number 
of specially constituted financial 
.-vehicles. Many of them 
.-have found it difficult io find 
-suitable homes far the resources 
they have available. Established 
small business financiers hk** 
rthe Industrial and Commercial 
Finance Corporation have been 


driven to complain that there is 
far too much money chasing too 
few genuine investment oppor- 
tunities. 

NVa two of London's bijtsesl 
ir.sumr.ge companies a:'? join- 
in') ?» 5 K tor lo iaunrit wfc«: they 

claim :• a new apprearh ro llie 
mijjJjt;:" of Br.Vsh technology. 
Commercial Union and Legal 
Mid GCf! h.’-.v ~ 2 \ up Co’cti 1 . 
a FjU- 50 join; venture rompany 
wftu-h will invest :n i-ie devc- 
•opmen- of ic’cinmlngy-babed 
proiTM* ses from *he r^eordi to 
;he produmon 

Coaeiu i*. r.o: . however, seek* 
ms w B!*rytv a w.v.isn:; room 

full of M; t.'i -eyed invfR.’ors. [ts 
bickers- claim they already have 
plrr.’v of :d«-:-.s; the company’s 
;r.J» will Li- :o pu; ;dt'ti5 into 
prr.c’jci 1 . 

The proposition is th&i any 
" gap ” :n the financial support 
of Er;t:sh technology is to be 
foii'H not :n ‘l 1 .? backing of 
smal!. entrepreneuna! com- 
panies — where ro no pc: i*. ion 
among Snar.esal insiiiutionR is 
already fierce — hut rather in 
the underwriting n' develop- 
meni. r.pendtct. 

Ek-eauj.L- of 'he straitened nr- 
ciMisl.ifu es uf BmS;; induitry,' 
compnme*. ni ;er. d-> na< have -he 
iv&l: u-.a liable to develop pro- 
cesses winch offer -..’niStaist 
point! i«;! bur earn Mire able 
risks i:id m asiv ever.' ii m lie- 


several years to pay off. The 
big insurance companies, on 
the other hand, can afford to 
he patient and can spread their 
risks by investing in a port- 
folio of ventures. 

The tochr.oloyical backing for 
the enterprise is in be provided 
by an association of independent 
private sec! or research nrgarus* 
a! ions called A1CR0. Members 
of this group carry nut some 
£70in a year pr contract re- 
search. hut have been facing the 
consequences of culbaeks lmth 
in the private anil public sectors. 

The aliractiDns [nr the hnltins 
in lapping the fimmrtal re- 
Miurces nf the City cf Uonriun 
are obvious. But what remains 
to be proved is whether viable 
projects an* in fact being left 
tn he fallow because of the lack 
of ir.duMria! .sponsors; and 
whether :t is passible 10 draw up 
local contracts which will allow 
Cogent to exploit iho technology 
in financial terms. 

CU and Legal and General 
accept that a largr proportion 
of the projects will fail lo pay 
flieir w.ty. They will he relying 
on the occasional winner, whirh 
will produce revenues out nf all 
proportion to the original mvosi- 
menl. R and D men dream of 
the royalties generated hy 
PilkingtonS fioat glass proress, 
or by (JKVs cnnslunt velocity 
joint for front wheel drive cars. 

How will the henetlls be 



split? Often there will be at itself. It seems that m zenera! 
least three miereMert- parties— Cogent w.H seel: :l« psyba ck 
the halt company, together wifli through a levy nn sales, 
an AICRO member ar.d Cogent This may not be easj to appiv 


when the really returns on 
the tr.ns: sucsessfu: projects will 
he generated fram world-wide 
licensing. 

So far the fesal documenta- 
non remains to be drawn up h 
may Well be that :t wsil-rtry 
front case to case, and in fact 
?ome projects may be suitable 
for financing on an equity parti- 
emotion hasis. From the point 
of view of the two insurance 
companies, this may he 55 
important a factor in achieving 
eventual financial returns as the 
underlying success or failure in 
technological terms. 

At this stage. CL' and Legal 
and General .’jo talking in terms 
of a .-ammitmenl of around £3m 
each, over a period of several 
years. As ar present envisaged, 
•lie individual projects will 
renuire investment of tfcf order 

of £3uO.DOO-£4OT.OOO each before 
they are brought to the stage of 
commercial production. 

Tn begm with, sis or seven 
proposals are being subjected 
to dota-led scrutiny with the 
objective of agreement on 
financing in the second half of 
the year. They range from exotic 
biotechnology processes to more 
dowa-ro-earth factory floor 
projects. 

Bcsidc« the two already 
mentioned, the list includes 
the production of an antithrom- 
botic a rent by biotechnological 
methods, and the expansion of 


a heavy vehicle preventive main- 
tenance service using oil and 
lubricant spectrometric analysis. 

•Another project involves pnly- 
vmylidene fluoride piezoelectric 
and pyroelectric film, and there 
is a plan to develop micro- 
electronic applications in auto- 
mobile components. For good 
measure there is a schema to 
set up a continuous process lo 
refine secondary lead. 

According to Mr Tony Gray, 
chief execuuve of Cogent, the 
ait hoc approach in the past by 
the City lo the problems of 
financing technology has not 
been satisfactory. He argues 
that Cogent is much more than 
a man in an office trying to 
evaluate projects, but is a care- 
fully structured operation. 

Now there is a major 
technological resource logether 
with two financial institutions.’' 
he says. The organisation will 
accelerate the process whereby 
technology is transferred to the 
market place. He is empha- 
tic: " Cogent is vot another 
development or venture capital 
company." 

The most obvious parallel is 
with the technology .subsidiary- 
set tip nearly two years ago by 
Prudential Assurance, called 
Prutec. As much as £2Um has 
been initially allocated to this 
venture, and in fact Mr Gray 
was at one time associated 


with Prutec on a management 
consultancy basis. 

Prutec has some similar 
features, including a tie-up uith 
a research organisation — in this, 
case Patscenire International, 
an offshoot of the PA manage- 
ment consultancy group. Jt 
is a rather more broadly based 
operation, covering the field 
from unsolicited inventions tn 
activities alun to venture 
capital. 

Commercial Union and Legal 
and General — bits of their 
names have been reassembled 
to form the litle Cogent, to- 
gether with a “t" for tech- 
nology — seem to have taken a. 
rather less ambitious approach. 
They insist that they are look- 
ing for commercial returns, hut 
are clearly also seeking to mini, 
mise the* risks. Thus CU was 
initially involved in the scheme 
but invited Legal and General 
in to share the financial 
responsibilities. 

The attitude now is very 
much to see how it works out, 
without any particular long- 
term commitments. If success is 
hard to achieve, it is unlikely 
that the two insurance com- 
panies will put any more money 
in. If the results prove promis- 
ing. they might decide tn bring 
in more partners as a way of 
financing expansion rather than 
put up substantial new capita! 
for what will always be a risky 
enterprise. 


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FINANCIAL TIMES 

PUBLISHED IN LONDON & FRANKFURT 

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32 


Financial Times Friday May 14,1982 


Companies and Markets 


INTERNATIONAL COMPANIES and FINANCE 


Mark Webster reports from Gothenburg on the fruits of.SKFS restructuring 

Bearing up under the Japanese challenge 


BEARINGS ARE like feet — you 
may prefer to igoore them but 
it would be hard to move 
around without them. 

That knowledge may have 
given some comfort to Sweden's 
SKF group, the world's biggest 
bearing makers, in the iast 10 
years of market turmoil. It has 
had to face up to stiff Japanese 
competition and declining 
demand from customers bit by 
the recession. 

The group is generally 
pleased with the way it has been 
able to fight off the Japanese 
challenge. According to SKF’s 


closed — four in Europe — and 
the workforce has been cut 
from 57,000 to 37,000. 

Under the grandly titled 
Global Forecasting and Supply 
System (GFSS) there has been 
a thorough rationalisation of 
the European bearing division’s 
production. All the fabrication 
of any particular bearing is 
concentrated on one factory to 
give the same economies of 
scale as the Japanese have 
achieved. 

GFSS has enabled the Euro- 


market. 

There has been a general 
trend towards specialisation in 
the industry by the small com- 
panies producing very 7 lew 
bearings or the Japanese com- 
panies making many thousands 


The world’s biggest 
bearing maker is 
planning a big push for 
volume sales in the U.S. 

eussfs "srvas and f ^ er productive 


estimates. The Japanese market average of 8 per cent in the past gams UlTOUgn 


share in Europe has peaked at 
under 10 per cent while SKF 
has consolidated its European 
sales at 36 per cent. 

But there is no room for self- 
congratulation in the bearings 
industry. For the future, SKF 
has developed a twin strategy 
to improve market share and 
profitability in Us worldwide 
operation — a big push for 
volume sales in the U.S. from 
its European factories and 
further productivity gains 
through automation. 

Both are more easily said 
than done. Stagnating demand 
in Europe and widespread over- 
capacity in the industry means 
that the agony is far from over. 
Only the lean and fit will 
prosper. 

SKF points with evident satis- 
faction to the success of its 
radical restructuring in the 
past decade. Six plants have 


five years, making their output 
per man hour higher than their 
Japanese competitors, accord- 
ing to SKF. At the same time, 
SKF says it has managed to 
cut its stocks of raw materials 
and finished goods, boosting 
cash Row. It has also managed 
to improve customer service. 

SKF have tackled the 
problem of having too many 
different bearings with low 
production volume, which gave 
it the image of a “ bespoke " 
bearing maker. By negotiating 
with manufacturers, it has cut 
its number of individual items 
from nearly 50,000 to 1S.000 in 
the last 10 years, and is work- 
ing on reducing them further. 

High volume production will 
continne to be the bread and 
butter of the company. But 
Mr Lennart Johansson, chief 
executive, mode it plain that 
SKF would stay in the specialst 


automation 


of a select number of items. 
But SKF wants to be able to 
compete across the range, and 
believes its size will allow it to 
do so. 

The 500m bearings the group 
made last year accounted for 
nearly 70 per cent of annual 
turnover of SKr 13.5bn ($2.3bn> 
and generated most of the mod- 
est SKr 883ra pre-tax profits. 

Its 24 per cent share of the 
world market makes it as big 
as its four biggest Japanese 
competitors — NSK. Koyo Seiko. 
NTN and Nichi-Fujikoshi — 
comtoined, according to SKF 
estimates. The group is aiming 
for further growth in the UJS. 

SKF has a broad manufactur- 
ing base in Europe with plants 
in Germany, Italy, Sweden, 


France and Britain and a wide 
network of factories in overseas 
countries, especially South 
America, and in the US. 

With that sort of base. SKF 
believes it can achieve all the 
economies of scale it needs to 
beat the Japanese at the export 
game and expand sales not only 
in the U.S. but even in Japan 
where it has a modest 1 per 
cent of the home market. 

The U.S. consumes one third 
of world demand, for bearings, 
but SKF has been held to a 
market share of under 10 per 
cent because - anti-trust legisla- 
tion. which restricted its rela- 
tionship with its U.S. offshoot 

Last year, the anti-trust rule 
was lifted. The group plans to 
increase its market share first 
by building volume sales direct 
from its European companies 
and then by investing substan- 
tially in plant and equipment 

SKF also wants to pursue its 
productivity gain by further 
con traction of its manufactur- 
ing interests and more cuts in 
the level of employment 

Mr Mauri-tz Sahlin, deputy 
managing director, and director 
of the European bearing divi- 
sion, was reluctant to say how 
many jobs would go. But an 
ideal plant would employ 500' 
to 1,500. 

One or two plants would go, 
but he would not say in which 
countries the cuts would be 
made, insisting that the group 
had not decided which factories 


would be axed. 

However, he did say that 
there would be further reduc- 
tions in the output of its UK 
manufacturing company at 
Luton, which has been one of 
the least successful of the 
group. But there was no ques-. 
tion of pulling out of Britain,' 
which was still an important 
market. 

SKF*s big hope is that in the 
future a fully automated pro- 
duction line can be introduced, 
allowing 22-bo urs-a-day running 
time and only 2 hours for 
maintenance. 

The first fully automated 
grinding line for bearings will 
be introduced in Sweden and 
Italy later this year after exten- 
sive test work, and work is 
going forward to perfect an un- 
manned turning line. 

SKF’s management concludes 
that although the Japanese 
invasion has been halted, it 
could be reopened. 

As SKF prepares to celebrate 
its 75th birthday this year it 
will no doubt wish to live up 
to the spirit of is founder, a 
production manager in a small 
textile factory, who designed a 
revolutionary new bearing and 
made a fortune out of it. 

But the group has no plans 
at present to extend its activi- 
ties into new fields. “We do 
not need to diversify.” said Mr 
Sahlin. " We are already in 
almost everything.” 


Increasing 
costs 
hit U.S. 
Woolworth 




Credit National raises $600m Eurocredit 


BY PETER MONTAGNON, EUROMARKETS CORRESPONDENT 


FRANCE returned to the Euro- 
credit markets yesterday with 
a 5600m, eight-year borrowing 
for Credit National, its state 
financial institution, whose con- 
ditions include a margin of only 
0.1 per cent over U.S. prime 
rate. 

The deal, which is led by 
Banque de I’lndochine et de 
Suez. Chase Manhattan and 
Manufacturers Hanover, marks 
only the second time that a 
French state borrower has 
raised prime-based funds which 
in the past were considered too 
expensive in terms of overall 
interest cost. 


Credit National has achieved 
a prime-based margin which is 
believed to be the lowest yet 
seen on an internationally syn- 
dicated credit for a non U.S. 
borrower. As usual, however, 
the deal is structured in a highly 
complicated way that makes 
comparison with terms on other 
deals virtually impossible. 

The basic conditions, which 
include a five-year grace period 
before repayments begin, allow 
for a margin of 3 per cent over 
London Eurodollar rates or 0.1 
per cent over prime as long as 
the rate is lower than that paid 
by banks in New York on certifi- 


cates of deposit 

If the CD rate moves above 
prime, the borrower will pay 
that rate, plus a margin of { per 
cent to allow for the higher cost 
of funds to lending banks. 

But the most unusual feature 
of the credit is that Credit 
National has undertaken to 
draw an average of 80 per cent 
of the total credit throughout its 
life, leaving 20 per cent to be 
used as a revolving facility. 

At the same time, an average 
of $33 0m will be drawn over 
London Interbank offered rate 
I Libor) margin, leaving a maxi- 
mum of $270m to be drawn over 


the more expensive prime rate. 
Of this remaining sum $120m 
can be left undrawn as it con- 
stitutes the revolving element 
so that minimum average draw- 
ings over prime will constitute 
only S150m. 

The deal thus gives Credit 
National considerable flexibility 
in drawing on the credit in 
return for whicN it will pay an 
unusually high commitment fee 
of | per cent so long as only SO 
per cent of the credit is drawn. 

If drawings reach or exceed 
90 per cent, the commitment 
fee falls to $ per cent. 


New York 
weakness 
hits bonds 


By Our Euromarkets Staff 


X-M0NEY MARKETS • FOREX-MONEY MARKETS • FOREX-MONEY MAR 


No-one knows more 
about Pacific Basin currency 
dealingthanwe da 


Bank of New South Wales - 
Australia’s largest banking group 
-has integrated the London 
business of The Commercial 
Bank of Australia Limited, which 
now forms part of the group, with 
its own London operations. From 
1st April 1982, all our business 
transactions in London will 
continue underthe name of Bank 
of New South Wales. 

The merger of the banks 
in London has 


enabled us to 
enlarge our 
London 
Foreign * 
Exchange and 
Money Market 
capabilities, 



resulting in a special 
combination of experience, 
expertise and resources. . 

Bank of New South Wales, 
London, is now dealing on a 
bigger scale and is able to handle 
even more deals than before. 
Active in all currencies, we are 
the major dealers in Pacific 
Basin currencies and provide a 
round-the-clock 
service from 
Wellington, 
Sydney, Hong 
Kong and 
Singapore to 
New York 
and San 
Francisco, as 
well as London. 


Telephone our London Dealing Room (01)283 5321 
Telex: 8956425 ’Reuter Monitor page code: WSXD 
Reuters;direct dealing code: NSWL 

W Bank of 9 New South Wales 


(incorporated In Australia with ffmitsd fiabflity) 
First Bank in Australia 
Walbrook House 23 Walbrook London EC4N8LD 


Sydney 

Wellington 

Hong Kong 

Singapore 

New York 

San Francisco 

Tel: 231 4404 

Tel: 724035 

Tel: 21 3236 

Tel: 22321 47 

Tel: 9490838 

Tel: 9864238 

Telex: 68001 

Telex: 30038 

Telex: 74935 

Telex: 26722 

Telex: 425679 

Telex: 470609 



PRICES OF fixed interest dollar 
Eurobonds fell by around i 
point yesterday on theback of 
the weaker trend in the New 
York bond market on Wednes- 
day night 

Dealers said they were having 
to work hard to place some of 
the new paper in a market 
where quality consciousness 
has become increasingly acute 
of late. Despite this, some re- 
ported that the basic undertone 
remained reasonably buoyant 
with, the influence of develop- 
ments in New York less than 
might normally have been ex- 
pected. 

The only new issues announ- 
ced yesterday were in the Swiss 
franc market where the Indus- 
trialisation Fund of Finland 
launched a SwFr 40m. ten-year 
bond through Banque Gutz- 
willer. Pricing is to be set later. 
Union Bank of Switzerland is 
leading a SwFr 200m. 61 per 
cent six-year private placement 
f«jr the Japan Development 
Bank. 

On the secondary market 
prices or Swiss franc foreign 
bonds rose by around £ point 
as banks reported a new cut in 
short-term deposit rates. But 
the D-mark foreign bond market 
saw prices fall by ff per cent as 
the dollar strengthened against 
the German currency. 

Helsinki is expected to launch 
a DM 50m bond with a yield 
of around 9 per cen* through 
BHF Bank today, while the DM 
100m eight-year issue for Escom 
has been priced at par with a 
coupon of 9} per cent 

Terms were also set on the 
SwFr SOra to SwFr 100m ten- 
year bond for Renfer. the 
Spanish national railway, which 
will carry a coupon of 73 per 
cent and issue price of par. 


By Our New York Staff 

WOOLWORTH, the large U.S. 
retailing chain, made a loss 
of $16m, or 56 cents a share, 
in the first quarter of this 
year, against a $2m loss, or 10 
cents a share. Hie company 
blamed the weakness of con- 
sumer baying, combined with 
the pressure of high costs. 

Wool worth’s British sub- 
sidiary. in which it has a 53 
per cent interest, made a loss 
of S2m for similar reasons. 

Mr Edward Gibbons, chair* 
man, said Woolworth’s 
specialty stores, to which the 
company is increasingly turn- 
ing, performed better than 
the general merchandise 
stores for which it is famous. 

The UK company's sales 
were up 8 2 per cent in 
sterling terms compared with 
the same period of 198L But, 
he added, “pressures on gross 
margins resulting from con- 
tinued inflation along with 
the softness of the British 
economy resulted in the 1982 
first quarter loss.” 

_ Woolworth’s total debt at 
the end of the quarter 
amounted to $L3bn, a slight 
increase from the previous 
quarter. Mr Gibbons said the 
company entered into a three- 
year 375m loan agreement 
with five banks in February 

Sales bad pieked up slightly 
in the dosing weeks of the 
quarter. Mr Gibbons did not 
expect any major economic 
upturn until later this year, 
but- he believed results would 
be helped by tighter cost con- 
trols. On the other hand, high 
interest rates and weak 
foreign currency exchange 
rates would offset some of the 
gain. - 

Domestic sales were up 1.4 
per cent in the quarter but 
foreign sales declined 4.3 per 
cent reflecting the dollar’s 
strength against other curren- 
cies. 

Woolworth expects year-on- 
year operating profit com- 
parisons to improve over the 
remainder of the year. 


v: 


Ford chairman sees (J! 
brighter prospects 


1 «vl 

■1 iff 

• i|i r 


BY DAVID LA9CELLES IN NEW YORK 


DETROIT sounded a slightly 
more optimistic note yesterday 
— albeit a cautious one. 

Mr Philip Caldwell, chairman 
of Ford, the second 'largest UJS. 
motor company which has been 
losing hundreds of millions of 
dollars, told the annual meet- 
ing yesterday that the current 
quarter would he much better 
than the first, when Ford was 
in the red to the tune of 3355m. 

“Beyond that, how well we do 
depends on how well the 
economy does,” he said. 

He did not elaborate on 
where the improvement would 
come from or bow it would 
affect Ford’s financial results. 
But he stressed that his com- 
pany was working hard to 
reduce operating costs. Ford 
had already eliminated about 
32.5bn a year in costs and ex- 
pected to eliminate a further 
$lbn this year. 

The board would reinstitute a 
dividend as . soon as possible, 
but Mr Caldwell implied that 
the company’s finances did not 
warrant a resumption soon. 
Ford dropped its dividend at 


the .eDd of last year. . 

Worldwide capital spending 
for 1982-85 is expected to “in. 
crease substantially'’ . from the 
outlays of $llbn over the past 
four years. 

Most of the higher spending 
will be used to finance the in- 
troduction of 33 new car and 
truck models in various markets ■ 
in .the 'next four years. 

General Motors, the leading 
U.S. car company, yesterday 
.made a rare recall of workers. It 
took back, 1,800 people who had i 
been indefinitely laid off. at a 
Michigan plant, in order to. in- 
crease production of compact 
models. The company, expects 
demand to rise, and production 
at the plant is being raised from 
50 to 70 units an hour. 

The brightening prospects for . 
the UE. auto industry were 
underlined earlier this week i 
Mfs Maryann Keller at Paine 
Webber Mitchell Hutchins, one 
of Wall Streets most influential • 
motor industry analysts, issued i 
a buy recommendation which 
pushed GJVFs shares up 1} points 
to 45p. 


Total discusses disposal 
of Canadian assets 


BY ROBERT GIBBENS IN MONTREAL 


TOTAL PETROLEUM (North 
America), based in Calgary, is 
discussing with interested 
parties the sale of all or part 
of its Canadian assets. 

The company said the assets 
may be sold completely or a 
deal to increase Canadian 
ownership would be considered. 

Mr Philippe Dunoyer, presi- 
dent, said the assets, valued by 
the company at C$I46m 
( US$119. 4m ) at the end of 1981. 
would be more profitable for a 
Canadian company. 

The company rites the 
Federal Government ownership 
policies, which it calls discrimi- 
natory for the move. 

Under the Canadian national 
energy programme, grounds for 
exploration on federally con- 


trolled oil and gas lands are 
available only for companies ■ 
with substantially more than 
50 per cent Canadian control. 

Total is 52 per cent controlled 
-by Compagnie Francaise des 
Petrol es of France and moved ; 
into North America about 15 1 
years ago. 

It recently bought a small • 
U.S. refinery for US$245m, • 
bringing its total refinery capa- > 
city to 150,000 barrels a day in 
the U.S. It is widely reported 
to be planning a deal to increase 
its U.S. exploration and produc- 
tion base. 

The company showed a loss 
of C364m (US$52.3m) in 1981 
against a profit of C$47 m tn 
1980. Little improvement is 
expected until later this year. 


FT INTERNATIONAL BOND SERVICE 


The list shows the 200 latest international bond issues for which an adequate secondary market 
exists. For further details of these or other bonds see the complete list of Eurobond prices which 


will be published next on Wednesday June 16. 


Closing prices on May 13 


75 

7S 

75 

60 

400 

225 

200 

50 


Cigna lower on 
property and 
casualty losses 


By Richard Lambert in New York 


U.S. DOLLAR 
STRAIGHTS 

Aetna Life 15 86/97 ... 
Artiax Int. Fin. 16% 92 
h Anw O/S Fin 14% 89 
APS fin. Co. 16*4 89 ... 

Arm co O/S Fin. 15*. 86 

ATT 14*. 83 

Biker Ini. Fin. 0.0 92 
Bk. Amer. NT SA 12 87 
SurrouRhs In t. 15% 88 

Canadair 15% 87 150 

Can. Nat. Rail 14’* 91 100 
Carolina Power 164 *** 

CIBC 16 87 

Ci:>com O/S '•> w •« 
Citicorp O/S 15*2 85/97 

CNA 15 7 » 97 

Con. Illinois 1% 89 ... 

Duka Pwr O'S 15*2 89 
Dupont O/S 14% 88 .. 
Duoont O/S Cap 0.0 90 
ECSC 14*4 87 


GO 

100 

lOO 

125 

75 

lOO 

GO 

400 

300 

SO 


E1B 13*» 89 150 


Eksporrflnans 14% 83 
Gen. Elec. Credit 0.0 92 
Gen. Elec. Credit 0.0 S3 
Geny Oil Ini. 1* 89 
GMAC O/S Fin. 16 88 
GMAC O/S 151. 86/97 
Gulf Canada L’d 14*4 92 


Gull nil 14*4 94 175 


Gulf Oil fin. 0 0 92 
Gulf Stum* O'S *6 90 
Int. -Am. Dv. Bk. 15** 87 
Japan Airlines 1514 88 
Japan Dew. R6. 15** 87 

N*t. West 14*4 31 

New Brunswick 16** 89 

OKG 15*, 85/97 50 

Ontario Hvd. 16 91 <NJ 200 
P.ic. Gas & El 15!c 89 


Pae Gas & El 15% 89 - 45 


350 

200 

160 

400 

125 


C. Penney Gl. 0 0 94 
Philips Patrol 14 89 ... 
ti-ebec Prov. 15% 88... 

R J Rynlds O/S 0.0 32 
Saskatchewan 16 89 ... 

Spain 15*4 87 100 

Siatcforataa 16% 87 ... 50 

Sweden 14*j 88 . . .. 160 

Sw, Ex. Cr. IP, 84/93 75 

Swed. Ex. Crod. 15*. 89 100 
Swed. Ex. Cred. n.O 94 200 
Transcanada 16 89 ... 100 
Wells Frinjo I. F. 15 57 75 

WMC Fin. 15*, 88 50 

World Bank 15*. 88 ... 250 
Average price changes .. 


Change an 

Issued Bid Offer day week Yield 
160 101*. 102*. -0*. +0*. 14.23 

103% 104% O +0*4 15.41 
97% 98** -0*, -0*. 14.74 
103*, 104 -0*, +0*. 15.26 
100*i 100*. -O'. -O 5 , 15.09 
101* 102*. O 0 13-78 
28 28*, -0*. +0*, 13.79 

92*# 92*. +0*. +0*. 14.16 
104** 105*. —01* +0*, 14J6 
101*, 102*4 -0*. +0*. 1481 
99*. 100*. -0*, +0*« 14.55 
104*, 105 -0*, -0*. 15.27 
103*, 103*, -0*. 0 14.85 

TOO*. 100*. +9*. +0 5 . 14.56 
101*4 101*. -0*, +0*« 14.67 
101 101*7 0 +0*.- 15.63 

102*, 103*. -0*, +0*4 14.94 
101*4 102*4 -0*, +0*, 15.00 
100% 101 -0*, -0*4 14.26 
37% 38% -0% +0*. 13.36 
99% 99% -0% -0% 14.83 
101% 101% -0% +0*4 15.07 
S8\ 98% -0% 0 14.82 
30% 31% -0% +0% 12.79 
27*4 27% -0% 0 12.79 

98% 99% -0% +0% 14.26 
102% 103 0 -0% 15.19 

99% 89*. 0 +0% 15-43 

99% 100% 0 +0% 14.70 

88% 98*. -0% +0% 14 .33 
28% 23 -0*, 0 13.56 
101 101% 0 +1% 15.69 
100% 100% -0% +0% 14.95 
101% 102% -0% 0 14.72 

103% 103% -0% +0% 14-34 

101 101% +0% +0% 14.45 
105% 106% -0% +0% 14.78 

98% 99 0 - 0% 16.13 

105% 106% -0*. +0% 14.73 
103% 104 -0*. +0*4 14.77 
103% 103% -0% +0% 14.60 
23% 23*. 0 +1% 13.05 
97*. 97*. -0% -0% 14.56 
100% 101% 0 +0% 14.93 

28% 28% -0*4 -0*, 13.72 
104% 104*4 0 +0% 14.87 

99% 99% -0% -0% 15.91 
100% 100*. -0% 0 15.51 
96*, 97 0 +0% 15.25 

102% 103% -0% +0% 14.78 
100% 100% 0 -0% 15.12 

21% 22% 0+1 13.61 

102% 102% -0% +0% 15.38 
107% 107% -0% 0 74.51 

98% 39*. -0% -0% 15.68 

102 102% -0% +0% 14.60 
On day —0% on week +0% 


OTHER STRAIGHTS 


50 

400 

400 

125 

150 

100 

100 


300 

60 

65 

SO 

50 

100 

75 


90 


SO 

40 

18 

BO 

40 

GO 

100 

50 


Can. Pac. S. 16% 89 CS 50 
Grd. Fpncier 17% 89 CS 30 
Hudson Bay 17 89 CS... 40 

Montreal 17 89 CS 50 

Oueb. Hydro 16% 89 CS 50 
Quebec Prov. 77 88 CS 
Sampsons 16% 89 CS ...- 
IT Bk. Nwv. 9% 90 EUA 
Algernons Bk. 10*4 86 FI 
Amfas Group 12% 86 FI 
Amro Bank 12 86 Ft ... 

Phil. Lamps 10% 87 FI 

Pierson 10% 86 Ff 

Bihobank 12 86 FI 50 

OKB 14 B6 FFt 400 

Solway et C. 74% 86 FFj 200 

Acona 14 85 £ 2D 

Beneficial 14% 90 C (D) 20 

BNP 13*- 91 E 15 

CECA 13*, 88 £ 20 

Fin Ex. Cred. 13% 86 £ 15 

Gen Elec Co. 12% 89 C 
Hiram Walker }4% 85 f 
Privatbanken 14% 88 C 

Quebec 15% 87 £ 

Reed (Nd) NV 10% 89 C 
Royal Trustee 14 86 E 
SDR Franca 15% 92 E... 
Swed. Ex. Cr. 13% 86 £ 
Eurofima 10% 87 LuxFr 


Change on 
Isaued . Bid OBer day week 'Yield 


50 

25 

12 

36 

25 

12 

30 

20 

500 


EIB. 9% 88 LuxFr 600 


t99% 100 +0% +0% 16.42 
tIOQ ,100% +0% +1% 17.05 
MOO TOO 1 , O’ -0% 16-93 
tlQ2 102% 0 O 16-39 
1991,100% 0 +0% 16.46 
Mffi% 103 0 +0% 16.19 

197*4 97% 0 +0% 17-38 
89% 90% -0% -0*4 11.52 
101% 102 -0% +0% 9.65 
106% 106% 0 +0*4 10-36 
106% 106% 0 -0% 10.05 
101% 101% +0% +0% 9.87 
100% TOO** -0% -0% 10.0Z 
106% 107% -0% +0% 9.86 
91% 92% -0% +0% 16-82 
92% 93% — 0% +0% 17.44 
95% 96*4 +0% +1% 15.55 
87% 88% 0 +1% 16-85 

92 93 0 +1% 15.06 

94% 95% +0% +1 14.63 
95*4 96% -0*« +0% 15.11 
92% 93% -0% +0% 14.14 
97% 98% -0% +1 14.88 
94% 85*, +0% +0*4 15.86 
103% 104*, -0% +2% 14.38 
102% 103% -0% +1% 15.BB 
97% 98% -0% +0% 14.57 
994100** 0 +1% 15.48 
97% 98% —0*, +0% 14.38 
96% 97% -0% 0 11. 33 
94 95 -0% +0% 11.08 


25AHL? 


FLOATING RATE 
NOTES 


DEUTSCHE MARK 
STRAIGHTS 


Change on 

Issued Bid Offer day wsak Yield 


THE DOWNTURN in the U.S. 
insurance industry has left its 
mark on Cigna Corporation, the 
company resulting from the 
recent merger of Connecticut 
General and INA Corporation. 

Substantial underwriting 
losse* on its property and 
casually side have contributed 
to a sleep fall in first quarter 
earnings to $61.2m. or 79 cents 
a sharej:om,pare'd with $120.8m 
or $1.57 a share for the two 

companies Iasi year. The cur- 
rent year excludes a loss of 6 
cents a share from investments 
compared with a gain of 31 
cents last year. 

Operating income on the pro- 
pert/casualty side was down 
from S6t. 2m to $22.3m, refleri- 
ina an underwriting loss of 
S13Sm compared with S66m 
The combined loss and ex- 
pense ratio was 115.9 per cent, 
sharp deterioration 


Denmark 70 


EOF 9% 92 

EEC 10% 93 

EEC 9>j 94 ...: 

EIB 9% 88 

Ireland 10% 86 
Mexico 17 68 ... 



300 

104%104% -0% -0% 

8.6S 


200 

104*, 104% -0% -0*4 

8.61 

'92 

100 

101% 102 -0% +0% 10.22 


100 

102% 103% — 0% -0*4 

9.26 


100 

103 103% —0% -0% 

9.59 


100 

101% 102% -0% -0% 

9.52 

.... 

100 

104% 106% +0*4 0 

9.41 

.... 

200 

103% 103% 0 -0% 

9.25 


60 

102% 103% 0 -0*4 

9.16 


100 

101% 102% 0 -0*4 

9.47 


TOO 

101%1flZ% -0% -1% 

10.59 

30 

ISO 

100 100*, -0% -O*. 

10.93 


100 

105 105% -0% -0% 

9.00 


200 

104% 105 -0% -0% 

8.86 

... 

150 

102% 103% -0% -0% 

9.13 

.... 

150 

106% 106% -0% -0% 

9.19 

.. 

150 

105 105% -0% -0% 

9-36 


100 

99% 100% -0*. -0% 

9.98 

S4 

50 

107% km -pi, +o% 

93S 


TOO 

100% 101% -0*, -0% 11.32 

... 

100 

102% 103 +0% 0 

8.94 


250 

1US% 105% -0% -0% 

9.10 


Nat. West. 9*, 92 .. 

New Zealand 9% 89 

OKB 9% 86 

Quebec 10% 92 .. .. 

Duubec HvHro 10*4 91 

Rente 10 92 

Tauemautobohn 9*i 

Venezuela 11% 91 
World Bank 9% 89 
World Bank 10 91 

Average price changes... On day -0% on week -0% 


Allied Irish 5*4 92 0% 

Bank of Montreal 5% 91 0% 
8k. Of Tokyo 5% 91 (DJ 0% 
Bk. Nova Scotia 5% S3 0% 

BPCE S% 88 O** 

R?CE 5% B7 .. 0% 

Caisse Nat. Tale. 5% 90 0% 

cen? 5*4 2002 0*, 

Co-Ban Eurafin 5% 91... 0% 
Credit Agricole 5% 97... 0*4 
Credit Lyonnais 5% 97 .. 0% 

Credit Nat. S*, 94 JO% 

Denmark. Kngdm. ol 92 
Den NorsLe Cred. 5*, 93 0% 

Ganfinance 5% 92 0% 

Ind. Bank Japan 5% 88 0% 
Llcvrfa Eurofln 5*. 93 ... $0% 
ITCIJ Japan 5*- 89 0% 


Spread Bid Offer C.tfte C.cpn C.yld 


98% 99 15/10 15.69 15.83 
89% 98% 29/10 15% 15.22 
98% 99% 10/6 13% 13.40 
99% 99% 29/10 15% 15.20 

99*« 99*4 28/10 15 15.08 

89% 100 27/7 16*4 16.29 

89% 99*. 21/4 15*4 15.81 

98*, 99 11/6 14.82 15.00 
99% 99% 14/10 16 16.10 

99% 39% 24/9 15-44 15.53 
99% 99*. 1/10 16 16.06 

88% 99 9/6 14.69 14.87 

D%» 199% 99% 25/8 1S.44 15.55 
97»« 98*4 4/6 13.56 1184 
99% 100% 30/6 15% 15.52 
99% 99% 12/11 14% 14J9 

99% 99% 29/4 17.13 17.24 
99% 99% 16/7 15.31 15.41 


Net. West, fin 5% 91. . 
New Zealand 5% 87.1... 
Nippon Credit 5*4 90 . . 
Nordic Inr. Fin. 5% 91... 
Offshore Mining 5% 91 
PKhanken 5 91 


Socicte Generate 5% 95 
Standard Chert. 5% 91 
Sumitomo Fin. 5% % ... 

Sweden 5% 89 

Toronto Domm'n 5% 92 

Average price changes... On day O on week 0 ’ 


so% 

: 99 ' 

99% 12/8 

74% 

14.74 

§0% 

99% 

99% 16/7 

15.19 

15.26 

0% 

99% 

99% 7/10 

15.56 

15.62 

0% 

99*4 

99% 10/8 

16.06 

16.14 

0% 

98*. 

99% 6/11 

15% 

15.40 

0% 

98% 

99% 2/6 

73 

13.73 

0*4 

99 

99*, 17/6 

14% 

14.48 

0% 

86*. 

99% 23/9 

16% 

15.53 

0% 

99 

99% 24/5 

13% 

13.35 

0*4 

99%. 

99% 1/9 

15.31 

15.41 

0*, 

98% 

99% 18/S 

13J1 

13.46 

0% 

99% 

100 9/8 

16 

16.04 

0% 

99% 

99% 26/8 

16.31 

16.43 

0% 

99% 

99% 11/8 

16% 

1644 




- 


■hix 


* w 


®nsfc 


Pay freeze at 
U.S. Gypsum 


By Our Financial Staff 


U.S. GYPSUM, the largest U.S. 
gypsum producer, has freezed 

all salaries temporarily and 

called a halt on bonus pay- 
ments. 

The company, which has been 
hit by the depressed U.S. build- 
ing markets, announced profits 
fnr last year of 974.17m or 
54 49 a share against 594.43m 
S3 78 a share 


SWISS FRANC 
STRAIGHTS 

Anseit Transport 7% 92 

Aucelsa.7% 92 

Australia 8% 94 . ... 
Cse. Nat. I'Energle 7 92 
CFE-MoxiCo 8*4 92 
Co-op. Denmark 8% 92 
Crown ZeNrbcfr. 6*4 92 

Denmark 7% 91 

EIB 7*, 92 

Bet. de France 7 92 ... 

ENEL -8 92 

First jCi:v Fin. 8% 92... 

Kommunlane 7% 92 

Manitoba 7 92 

Mitsui OSK 6% 92 

National Pwr. Co. 8 92 
Nippon T. and T. 6% 92 

OKB 8% 92 

Ost. Donoukrafr 7 92... 
OsT. Posrspar 7*, 92 ... 
Philip Morris 6% 92 ... 

Quebec 7% 92 

Sekisui Pre. 5% 92 WW 
Soc. Lut. de Cnt. 8*, 92 
Transcanada Pip®. 7 94 
Vorjrlberp Kruf; 6\ 32 


Change on 

Issued Bid Oder day week Yield 


SO 
80 
TOO 
100 
50 
25 
1 00 
100 
100 
100 
44 
25 
35 
100 
100 
30 
100 
100 
100 
100 
TOO 
100 
70 
80 
TOO 
50 


103*4 104 -0% +0% 6.93 
98% 99% -0% +0% 730 
104% 104% +0% +0% 5.99 
101% 101% -0*. +0*. 6.79 
98% 98% +0*4 -1% 8.46 
105% 105% +1 -0% 7.57 

TOZ% 102% -0% -0% 6.40 
102% 102% +0% +1% 6 .S3 
102% 103 “ 0% +0% 8.85 
102% 102% +0*4 +0% 6.63 
101% 101% -0% +0*, 7.80 
104*4 105 +0*4 +1% 7.52 

101% 102 +0*4 +1 6.98 

106 106*«- O +0% 6.14 
101 101% 0 +0% 6.34 
103% 104 0 +0% 7.42 

103% 103*4 +0% +0», 6.12 
104% 104% +0% O 7.06 
103% 103% -0% 0 6.83 

103*4 103% +0% +0% 6.9S 
103% 104 -0% +0*, 6.03 

106 106*4 +0% +1% 6.S1 
105% 106*. +0% +0% A97 
105 106% +0% +0*, 7.23 
HO 103% -0% -0% 6.60 
103 103*4 O +0% 6.31 


CONVERTIBLE Cnv. Cnw. 

BONDS date pries 

Aitnomoic 5% 96 7/81 - 833 

Bow Valley Inv. 8 95 ... 4/81 23.12 
Bridgestone Tire 5% 96 3** 1 ? 470 

Canon 6% « 1/81 829 

Daiwa Sees. 5*- 96 12/81 S13.3 

Fujitsu Fanuc 4% 96 10/81 584T 

Furokawa Elec. 5*4 96. .. 7/81 .300 ' 
Hanson O/S Fin. 9% 96 8/81 1.26 

. Hitachi Cable 5% 96 2/82 515 

Hitachi Cred. Con. 5 96 7 /m 1672 

Honda Motor S% 97 3/82 8«1 

Inchcape 8 95 : . 2/81 4.S5 

Kawasaki 5% 96 .' 9/81 229- 

Marui 6 96 ... 7/81846.4 

Minolta Camera 5 96 ..10/81 826.4 

Minorco 9% 97 5/82 8.16 

Mu .Mia 5% 96 7/81 2166 

NKK 6% 96 7/81 188 

Nippon Chem-C. 5 91. ..10*81 919 
Niooon Electric 5% 97... 2/82 846 
Orient Finance 5% 97 ... 3/82 1205 

Sanyo Flectrie 5 96 10/M - 652 ' 

Sumitomo Elec. S% 9? .. 3*8^577.3 
Sumitomo Mot. 5% 96 296.1 

Swiss Bk. Con. 6% 90... 9/80 191 
Konishiraku 8 90 DM . . 2/82 S8B 
Mitsubishi H. 6 89 DM 2/82 283 


Chg. 

Bid Offer day Pram 
91 92% -0% 4.20 

07 98*4 -0% 62. IS 

91*4 93% -0% -1.31 
108% 110% +4 12.82 

167 69 -1 “2.90 

94 96 -1 5.01 

99 100% 0 -3J8 

189 ' 90 +3 -8.14 
92% 94 +1 2.72 

85*4 87% -0% 5.32 

91% 93*. +1% 231 

TOO 62 -2% 16.89 
72% 74% +0% 4 .25 
108% TOB +0% 4J0 
65% 67*4 +1*4 B.56 

186 87%' -0% 12.48 

64% 66 0 14.35 

85% 86»i +0% -12.05 
68 70 0 10.53 

99% 100% +0% 10.48 
98% 97% +0% 4.10 
- 74% 76% +2% . 12.26 
92*» 94% +1% 2 JBZ 

70% 72% +1% 23.09 
77*. 79*4 -0*4 22.42 
106% 107 +3% 7.28 
94% 95*4 -0% T2JH 


■*, ! 3C, 


1 




" No in formation awanabfe— previous day's price. 

1 Only ano market maker' supplied a price. 

Straight Bonds: The yield is the yield to redemption of the 
mid-price: The amount Issued, is In millions orl currency 
units except lor Yen bonds- where , it is In billions. 
Change on weak “Change over price a week earlier. 

Floating Raw Notes: Denominated in dalle rt unless other- 
wise indicated. Coupon shown Ir minimum. C. die™ Dote 
next coupon becomes effective. Spread = Margin above 
six-month offered rate ft three-month: § above mean 
rate) for U.S. dollars. C.cpn ■■ The current coupon* 
C.yld “The current yield. 

Convertible Bonds: Denominated In dollars unless other* 






Average price changes... On day +0% on week +0% 


Change on 

YEN STRAIGHTS Issued Bid Offer day week Yield 

Asian Dev. Bk. 8% 91 15 100* 4 101*4 O +0*4 8.04 

Int.-Amer. Dev; 6% 91 -16 102% 103% 0 +0% 8.43 

Japan Airlines 7*, S7. 9 97% 98% 0 -8% 8.39 

New Zealand 8% 87 ... 15 101% 102% O +0% 7.97 

World. Bank 8% 93 ... 20 100% 101% 0 -W, 8.25 

A verogn nriej ehnnwm . On dny 0 on week 0 



Pre m -Percentage premium of the current eBeetive pnee 
of acquiring shares via tha bond over the moat recent 
price of the shores. 


© Tha Financial Times Ltd^ 1382. Reproduction in whole 
or. in pan -in any lorm . not. permitted without written 
consent.. Data supplied by DATASTRfihMJnternetionai. 





Fma ad at Times Friday May 14 1982 

Coapaaies and Harkets 


INTERNATIONAL COMPANIES and FINANCE 



German 
tyre group 
may again 
omit payout 

By Our Frankfurt Staff 

WEST GERMANY’S leading 
‘ tyre manufacturer, Continetal 
Gummi-W erfce, does "not expect 
^ to pay a dividend for 1982. the 
second year running that share- 
. holders win go empty-banded. 

• But the group is hopeful that it 
will manage to break even this 
year. 

Group pre-tax profits tumbled 
to DM 12.2m ($5.35m) in 1981 
from DM 70.8m in the previous 
: year. After-tax profits — before 
special provisions— showed a 
surplus of only DM 716,000, 
compared with DM 34m in 1980. 

Profit margins came under 

* pressure in all areas as falling 
volume sales made it impossible 
to recoup rising energy, labour 
and raw materials costs in high- 

’ er product prices. 

Gonti-G lunrai’s Uniroyal 

Englebert subsidiary operated 
at a loss, and re-structuring 
measures implemented in Bel- 
gium have not yet made any 
significant impact on the divi- 
sion's financial performance. 

Conti-Gummi also operated at 
a loss in its industrial products 
division. Overall group turnover 
virtually stagnated at 
DM 3-23'bn, an increase of only 
22 per cent. 

In the first four months of 
1982 Conti-Gummi recorded a 
5 per cent rise in turnover and 
. profit margins have eased 
slightly. 

The Conti-Gummi group is 
1 seeking to expand manufactur- 
ing co-operation agreements 
around the world following com- 
pletion of a licensing agree- 
ment last year with the Japan- 
ese tyre producer, Toyo Rubber 
in Osaka. 

The next target is the U.S. 
and a deal for local manufactur- 
ing of Continental tyres in 
North America is expected in 
the near future. 

The tyres division showed an 
unspecified profit in 1981 and 
held its market share, despite 
the recesion, worldwide over- 
capacity in tyre production and 
increased price competition. 
Parent company sales in 1981 
fell 2 per cent to DM 1.08bn. 

- One factor damaging sales 
was the growt hof complete 
knockdown (CKD)- vehicle 
sales, which exclude original 
equipment tyres. 

Tyres and car-related pro- 
ducts accounted for about 50 
per cent of the group’s world 
sales in 1981. This year the 
German car industry faces con- 
siderable uncertainties with 
-weak domestic demand .and 
exports vulnerable to the recent 
strength of the D-mark. 


>e in earnings 
first Quarter 


BY KEVIN DONE IN FRANKFURT 


BASF of West Germany, one of 
the world’s leading chemicals 
companies, saw group pre-tax 
profits drop of 38.1 per cent in. 
the first quarter of 1982 to 
DM 267m ($117m) from 

DM 446m in the corresponding 
1981 period. 

Profits fell chiefly as a result 
of the sharp deterioration in 
the oil refining and marketing 
division, continuing losses in 
commodity plastics, setbacks in 
its important potash activities 
and squeezed margins in the 
U.S. 

Group sales in the quarter 
stagnated with an increase of 
just 2.3 per cent to DM 8.3bn. 
Sales growth continues to come 
from abroad; exports rose by 8 
per cent in the first quarter to 
DM 2.3bn with strong demand 
in certain key foreign markets. 


Last year BASF group sales 
rose overall by 14.6 per cent to 
DM 3L7bn. Foreign turnover 
showed an increase of 21.4 per 
cent to DM 17.91m, while 
domestic sales rose by just 6 j 8 
per cent to DM 13.8bn. 

BASF ran up losses of 
DM 190m last year on its com- 
modity plastics operations. It 
has now cut low density poly- 
ethylene (LDPE) capacity by 
200,000 tonnes to 670,000 tonnes 
with cuts coming in the Federal 
Republic and Antwerp. 

Prof. Matthias Seefelder, 
chief executive of BASF, said 
that capacity reductions of up 
to 25 per cent were needed 
across- the plastics sector to 
overcome the industry’s grave 
structural problems. 

The group ran up operating 
kisses of more than DM 200m 


on its refinery operations — 
losses jumped to DM 50-100 per 
tonne In the quarter from an 
average of DM 40 per tonne last 
year — and its German re- 
fineries are working at little 
more than 50 per cent of 
capacity. 

The other mani loss-making 
area of BASF’s operations last 
year was its BASF Systems sub- 
sidiary in the U.S. — manufac- 
turers of audio, video and data 
processing products. The com- 
pany has closed its plant at Los 
Gatos in California and declared 
a 1981 pre-tax loss of $26. 3m. 

In the face of continuing weak 
international demand. BASF is 
slowing its capital investment 
programme to around DM 2bn 
this year compared with plans 
announced last year for more 
than DM 2_2bn. 


Spanish utilities in merger 


BY ROBERT GRAHAM, IN MADRID 


TWO OF Spain’s private utili- 
ties. Union Electrica and 
Fenosa, have merged to form 
the country’s third largest elec- 
tricity generating company with 
total assets of Pta 250b n 
(S2.5bn). The deal is widely re- 
garded as a forerunner of other 
utility mergers. 

The merger still requires 
government blessing, which re- 
lates largely to the way in which 
the merged company, to be 
called Union Electrica-Fenosa, 
has established its tax structure. 

In Galicia where Fenosa is 
based, there is opposition from 


worker shareholders and the 
local savings banks which fear 
regional control over Fenosa, 
One of the major attractions 
in the meager was the cheap 
hydro power that Fenosa con- 
trolled in Galicia and the 
nuclear potential of Union, 
whose distribution area covers 
Central Spain. The two com- 
panies have some common 
clients and Union hold a 6 per 
cent stake in Fenosa. The state 
holding company, INI, had a 10 
per cent stake in Union and 
board membership, so that the 
Government has effectively en- 


dorsed the idea of the larger 
unit. 

On the basis of 1981 results, 
the combined companies had a 
turnover of Pta 116m and total 
fixed assets of Pta 640bn. To- 
gether they employ 7,300. 

The cost savings of the 
merger are attractive, especi- 
ally if staff cuts can be made. 
Equally, the consolidation of 
assets provides greater financial 
muscle to meet increasingly 
costly capital spending. The 
merger also has the appeal of 
strengthening the companies 
against fears of nationalisation. 


French nationalisation worries Spain 


BY OUR MADRID CORRESPONDENT 


THE SPANISH Government is 
concerned about the status of 
subsidiaries in Spain of the 
newly nationalised French com- 
panies. 

Under Spanish foreign invest- 
ment laws, investment permits 
for private companies lapse if 
the parent company is nationa- 
lised. The subsidiaries of five 
French companies — CGE, PUK, 
Rhone Poulenc, Saint Gobain 
and Thomson — are affected by 
this ruling. The five Spanish 
units have combined sales of 
Pta 150bn ($1.5bn). 

In the ca se o f the Saint 
Gobain and PUK subsidiaries 
the French state now controls 95 
per cent of the glass sector and 
65 per cent of aluminium pro- 
duction. Between them they 


own or control 88 Spanish 
affiliates with assets of Pta 90bn. 

The Spanish Government 
realises that if it wishes to 
encourage a free market 
economy and join the EEC, it 
cannot act too aggressively to 
inhibit this French state. 
Indeed, it is recognised that the 
laws governing this aspect of 
foreign investment are pri- 
marily aimed at Eastern 
Europe. 

However, there is a genuine 
fear that the French Govern- 
ment in a move to stimulate 
employment in France could 
stop new investment in Spain or 
carry out a policy of disinvest- 
ment Alternatively, the French 
may seek to cover the Spanish 
market more and more from 
France. 


As a result the Spanish 
authorities feel that some 40,000 
jobs could be at risk. Thus in 
seeking to renegotiate the 
legality of the companies, it is 
likely that guarantees wiH be 
sought on this aspect. 

In February the Spanish 
Ministry of Economy sent out 
a questionnaire to the com- 
panies concerned giving them 
three months in which to reply. 
So far the Ministry reports 
little response. 

Saint Gobain employs over 
12,000 in Spain and has a turn- 
over of Pta 50bn. PUK is 
involved via Aluminio Espanol 
and Aluminio de Galicia and 
Rhone Poulenc has an important 
stake in the Spanish chemical 
industry plus interests in fibres 
and paper. 



IDB INTERNATIONAL N.V. 

U. 8^50^)00,000 
Guaranteed Floating Rale Notes 1987 
Unconditionally and irrevocably guaranteed as to 
payment ofprindpal and interot by 

ISRAEL DISCOUNT BANK LEVuTED 

For the six months 

13lh MAY 1982 to IS* NOVEMBER 1982 
the Notes will cany an 
interest rate of 14‘K»S per annum. 

The relevant Interest Payment Date will be 
15th NOVEMBER 1982 

Bankers Trust Company, Lond o n. 

Fiscal Agent 


Saga bidding for Noco 


BY PAY G JESTER IN OSLO 

SAGA PETROLEUM, one of the 
tore Norwegian oil companies 
chosen toy Its Government, to 
play a major role in explora- 
tion and development on Nor- 
way’s Shelf, is bidding for Noco, 
the Norwegian oil consortium. 

Saga, whose main source of 
income at present is its 1.6 per 
cent stake in the Anglo-Nor- 
wegian Statfjord field, is com- 
mitted to heavy borrowing in 
connection with stakes in 16 
licence areas on Norway’s Shelf. 
It does not expect to move into 
profit for several years. 


In contrast. Noco, a limited 
partnership with 16 companies 
in industry, shipping and insur- 
ance, expects to have positive 
cash-flow later this year. Noco’s 
16 member companies together 
also account for a sizeable share 
of Saga’s capital. 

It is understood that Saga is 
prepared to pay NKar 30m 
($5.08m) for each 5 per cent 
stake in Noco, whose capital is 
divided into 20 units, with four 
of its 16 partners holding two 
units and the rest one each. 






New Issue 
May 14> 1982 


This advertisement appears 
as a matter of record only 


EUROPEAN INVESTMENT BANK 

Luxembourg 
DM 100,000,000 

8%% Deutsche Mark Bearer Bonds of 1982/1992 



Offering Price: 100% 

Interest 8%% p. a. payable annually on May 15 
Maturity: May 15, 1992 

Listing: 


Frankfurt am Main, Berlin, DOsseMorfc Hamburg and MOnehen 


Deutsche Bank 

Akltengesefischsft 

Commerzbank 

Aktieneessnschaft 


Dresdner Bank 

AktiangneDsehaft 

Wfestdeutsche Landesbank 
Girozentrale 


WechseFBank 
Akfiongeseilschaft 


Badischs Kommunafe Landesbank 

— Girozentralo - 
Bayerischs Landesbank 
Ghrozentnto 


Banfchsos GebrOder Betfamann 
Deutsche Grrazentrate 
Deutsche Kommunalbank— 
Hamburgiscbe Landesbank 
_ Giiozontrate — 

Bankhaus Hermann Lanqw 
KommandrtgeseUschaft 

MarcfcHnck&On. 

SaLO p pen hea njEAGte. 

J. It Stein 


AkflongeGoIbchaft 
Richard Dans * Co* BanKara 
DG Bank 

Deutsche GenossenBchaflsbarik 
Georg Hauck&Sohn Bankkws 

Kornmancfltgesollschaftauf Akflen 

Landesbank Rtebifcnd-Pfab 
—Girazmtrata— 

BL MatriarsaaL Soho &CP. 

Sdteflda&M fi nchmeyenHer^stACo. 

TrinfcBW&Burfchafdt 


BankfOrGamehmfrtschaft 
AktiengesaUsdhaft 
Bsyariscba Varetasbaah: 
AkttengesaOschaft 

Barifner Handels- and Frankfurter Bank 

DaJbrficfc&Ca. 

Effectanbank- Wmfauig 
AkBengeselfschaft 
Hessische Landesbank 
-Gbana&sb- 

Landesbank Saar GhaBMifraki 

Nonfdeutscbe Landesbank 
Girozentrale 

Shnonbank 


Vferefos-cmd Wastbank 

Aktiengeselbchaft 

Wesifelanbank 


Severe 
profits 
reverse at 
Boliden 

By Our Nordic Editor 

BOUDEN, the Swedish 
metals chemicals group, 
announced a sharp fall in 
earnings from SKr 72m in 
the first quarter of 1981 to 
SKr 4m ($696,000) this year. 

A lower income from metal 
trading, shipping problems in 
the chemicals business and 
exchange losses of SKr 17m 
where the main eauses for the 
decline. 

The management expects 
earnings for the whole of 1982 
will be about SKr 150m com- 
pared with the SKr 285m last 
year and SKr 430m in 1980. 
Lost month, Boliden was still 
foreeasting unchanged profits 
this year. 

First quarter sales totalled 
SKr 1.1 6bn ($20 -2m), SKr 
218m less than last year. The 
previous figures, however, in- 
cluded about SKr 260m in 
sales by Snprajn, the Swedish 
fertiliser company sold last 
year to Norsk Hydro- 

Mr John Dahlfors, manag- 
ing director, said the worid 
price for copper in the first 
quarter was the lowest in real 
terms since the 193945 war. 
Lead and zinc prices also fell 
as a result of weaker demand 
from the car and building 
industries. 

Extraordinary Income of 
SKr 3m boosted the first quar- 
ter pre-tax figure to SKr 7m. 


Astra lifts 
turnover 

By Our Nordic Editor 

ASTRA, Sweden’s largest 
pharmaceutical company, 
reports a 18 per cent increase 
in sales to SKr 812m ($141m) 
during toe first four months 
of toe year. 

The annual report antici- 
pated a 15 per cent increase 
in sales to SKr 2.5bn in 1982 
and a lift of between 17 and 
21 per cetn in pre-tax profit 
to SKr 270-280m. Last year 
Astra’s sales were SKr 225bn 
while earnings shot ahead to 
SKr 240m. 


Philips pegged by steep 
rise in financing costs 


BY WALTSl ELLIS IN AMSTERDAM 


PHILIPS, the Dutch electrical 
group, reports a 10 per cent 
increase to FI 591m ($23Sm) in 
trading profits for the first 
quarter of 1982. Net profit after 
tax, however, eased to FI 116m 
from FI 134m following a 46 
per coat rise in financing costs. 

Sales were up 5 per cent on 
the same period of last year, 
helped by above-average growth 
in demand for electrical equip- 
ment — notably video recorders 
and colour televisions — in both 
the domestic and professional 
markets. The forthcoming 
World Cup competition due to 
take place this summer in 
Spain, has helped boost TV 
demand. 


Philips notes that sales over- 
all rose most sharply in the 
U.S. and Canada, while growth 
in Western Europe continued 
to be held back by the economic 
recession. On the other hand, 
Europe provided much of the 
increase in trading profit over 
the period. Improved sales in 
Latin America also helped. 

Sales in the industrial sup- 
plies division were variable, 
with a strong performance in 
televirion tubes and lighting 
equipment but problems in toe 
integrated circuits. Sales of 
medical equipment in toe U.S. 
were good, however, and there 
were also above average results 
in the sale of information sys- 


tems and cables to Saudi 
Arabia. Sales dipped in Asia 
and Africa. 

Philips expects sales volume 
to rise 5 to 6 per cent tins year 
and it maintains its earlier 
forecast of a gradual improve- 
ment in profits for 1982. 

• Trading group Verenigde 
HVA-Maatscbappijen returned 
to the black last year, booking 
a FI 2.4m profits after a 
FI 6S1.000 loss a year earlier. 
The entire profits is to be allo- 
cated to the reserves. 

The improvement results 
are largely attributable to 
income from agro-industrial 
activities. A further improve- 
ment is expected this year. 


French move to stimulate 
electronics sector growth 


BY TERRY DODSWORTH IN PARIS 


M JEAN-PIERRE CHEVENE- 
MENT, France’s Minister of 
Research and Technology, has 
set the country’s electronics 
industry the ambitious target of 
breaking into toe front ranks 
of world producers by the end 
of this decade. 

The plan is one of several 
industrial projects currently 
spilling out of the Government 
as officials begin to get to grips 
with the newly nationalised 
sector. But M Chevenement, one 
of the brighter stars among the 
younger members of the admini- 
stration, is clearly determined 
to give a special significance to 
electronics. 

Describing the industry as a 
sector which had to be given 
“strategic priority,” he called 
for a global mobilisation of the 
industry’s resources. The Gov- 
ernment, he said, would support 
a co-ordinated effort in training, 
research and investment, on the 
lines of the policies which 
created the country's nuclear 
industry. 

The Research Ministry is now 
working on a detailed project 
which should be presented in 
early summer. But M Chevene- 
ment has indicated the main 
lines of his thinking in his 
comments on a report on the 
industry prepared for his 


Ministry. 

According to the report's 
figures for 1980, France occu- 
pies fourth position in the 
world production league for 
electronics equipment, behind 
the U.S., Japan and West Ger- 
many. It comes slightly in front 
of Britain in the value of out- 
put (FFr 83bn ($13.9bn) in 
1980 against FFr 74bn). but 
creates less of Its GNP in this 
sector (3 per cent against 3.8 
per cent). 

No French company figures 
among the top 11 world enter- 
prises. although three of the 
recently nationalised groups — 
CGE, Thomson and Matra — are 
hovering just below these 
leaders. 

France’s trade in electronic 
products led to a FFr 1.5bn 
deficit last year with exports of 
37.5bn and imports of FFr 39bn, 
compared with 1980 surpluses 
of FFr 64bn in Japan and 
FFr 20bn in the US. 

M Chevenement’s broad ob- 
jective is to generate a trade 
surplus of around FFr 30bn by 
1990, creating about 200,000 jobs 
in the process. To achieve this 
objective the industry will be 
asked to lift research invest- 
ment in volume terms, from 
around FFr 12bn to FFr 20bn 
in 1986. 


Dollar boost 
for Banque 
Indosuez 

8/ David Housego in Paris 

A VIGOROUS expansion of 
overseas activities and a 
stronger dollar helped boost 
consolidated profits of Banque 
Indosuez last year by 28 per 
cent from FFr 534m to 
FFr 683m ($114.Sm). 

The bank says, however, that 
margins fell on both overseas 
and domestic activities. This 
was particularly sharp in 
France because money market 
rates were above base lending 
rates for much of the year. 
Indosuez is heavily dependent 
on the money market for its 
franc resources. 

The bank, which is still in 
the throes of being nationalised, 
continued the rapid expansion 
of its overseas network both in 
its traditional areas of the Far 
East but also in toe U.S. and 
Europe. New branches were 
opened in Bombay and Nairobi, 
Total assets rose by 49 per 
cent to FFr 140bn 
O Banque Bruxelles Lambert 
had a balance sheet total at 
end-March of BFr 965bn 
($22.4m), 25.9 per cent more 
than at end-March, 1981. The 
rise was due to a 38.4 per cent 
rise in bankers' deposits and a 
13.3 per cent rise in customers’ 
deposits, 


'Attfd these securities Baying been sold, tlda advertiseonent appears as a matter ot record only. 


&TDK. 

TDK Electronics Co., Ltd. 

(A Japanese corporation) 


2,000,000 American Depositary Shares 

Representing 

4,000,000 Shares of Common Stock 

(par value 50 Japanese yen per share) 


Goldman, Sadis & Co. 

The First Boston Corporation 
Salomon Brothers he 
Bache H alsey Staar t Shields 
Daxwa Securities America Inc. 
Kidder, Peabody & Co. 

Inc or porated 

L F. Rothschild, Unferberg, Towhin 

May, 1982 


Nomura Securities International, Inc. 


Merrill Lynch White Weld Capital Markets Gram 

Merrill Lynch, Pierce, Femur &. SmttTi Incarcerated 


Bear, Steams & Co. 
Billon, Read & Co. Inc. 
Lehman Brothers Kahn Loeb 

Incorporated 


Yamaichz International (America), Inc. 
Blyth Eastman Paine Webber 

Incorp or ated 

Donaldson, Lufkin & Jenrette 

Securities Corporation 

The Nikko Securities Co. 


Warburg Paribas Becker 

A. C*Bedker 


Wertheim & Co., Inc. 



VSJ$50fi00jm 


EUROPEAN ASIAN CAPITAL B.V. 

(incorporated xmlk fomr ed Uaialin in ihm Nethaiind}) 

Guaranteed Floating Rate Notes Due 1992 

UneondMooafly Guaranteed by 



EUROPEAN ASIAN BANK 

Abrwigpi.llcfteifi' 

(mcorponttdvmh Bated HeUUgf n the Federal RepabOcqf Germany) 
For the sis roonibs 

13* May 1982 to 15th November 1982 

the Notes will cany an imerest rate of 
14KS per emium with a Qropon Amount 
cfUS5755JB per USJSKWMQ Note, payable oa 
15* Noremfaer 1982 

Bankers Trust Company, London 
Agent Bank 



Sabah Development Bank Berhad 


U.S.$40,000,000 
Floating Rate Notes due 1989 

In accordance with the provisions of the Notes 
notice is hereby given that for the six month Interest Period 
from May 13th 1982 to November 15th 1982 
the Notes will cany an Interest Rate of 14.6875% per ann.^ 
The Coupon amount payable on Notes of 
U.&$10,000 will be $758B5 

Agent Bank 

$»HR5TCHK»SO 

lAfTSJ 




* 




34 


NOTICE 




a/r Wisconsin, me. 

$55,434,858 

Medianriferm Credit Facility 


to finance the purchase 

erf four BAe ISeries 200 P^enger/TramportAitciaft 
manufactured by 


(YmffneritaT Illinois limited 


$ 45 , 434^58 
Fixed Rate facility 

supported by the 

UK- EXPORT CREDITS GUARANTEE DEPARTMENT 


Continental Illinois National Bank 
and Trust Company of Chicago 


Bardays Bank Group 


The Chase Manhattan Bank; HA. 


Hie Krst National Bank 
of Boston 


The Hist Wisconsin National Bazik 
ofMSwaokee 


$10000000 

RevolvingCredit Badlity 


Continental Illinois National Bazik 
and Trust Company of Chicago 

The Erst National Bank The Ernst Wisconsin National Bank 

of Boston of Milwaukee 


Port Wayne National Bank Hrst National Bank of Appleton 

\&Iky Bank, Appleton 


CONTINENTAL ILLINOIS LIMITED 


4^,3532 


REPUBLIC OF PANAMA 

US $30,000,000 
9y NOTES DUE I 983 


NOTICE OF ELECTION 
TO EXTEND MATURITY 


In accordance with the pro- 
visions of the Notes, a reminder 
is given that holders of these 
Notes may elect- to extend the 
maturity of their' Notes; to 
15th March. 1988. 


UNITED 


Fiscal Agent 
LONDON 


BANCO DE CHILE 
US£30,MXM)(H> 

Floating Rate Notes due 1986 


in accordance with the provi- 
sions of the Notes, notice is 
hereby given that the Rate of 
interest for the next Interest 
Period has been fixed at \4\% 
per annum. The Coupon Amount 
will be U.S.S380.I4 in respect of 
U.5.$5,QQ0 denomination and 
will be payable on 1 7th 
November, 1982 against sur- 
render of Coupon No. 3. 

14th May, 1982 


Manufacturers Hanover Limited 
Reference Agent 


BiflLDING SOCIETY 
RATES 


Every Saturday the 
Financial Times 
publishes a table giving 
details of 


BUILDING SOCIETY 
RATES 


on offer to the public 
For advertising details 
please ring; 

01-248 8000 Ext 3606 


These Notes have been sold. This annonnewnen t appears as a matter of record only. 


New Issue 


May 1982 



Die Erste osterreichische Spar-Casse 

First Austrian Bank 

(Established in Austria with limited liability in 1SUP) 


U.S.$ 40,000,000 

Subordinated Bloating Rate Notes Due 1992 


Orion Royal Bank Limited 


Arab Banking Corporation (ABC) 

Chase Manhattan Limited 

Girozentrale und Bank der 
osterreichischen Sparkassen AG 

Union Bank of Switzerland 
(Securities) Limited 


Bayerische Landesbank Girozentrale 

County Bank Limited 

Merrill Lynch International & Co. 


S. G. Warburg & Co. Ltd. 


Westdeutsche Landesbank Girozentrale 


Amro International limited 

Bank of America International Limited 

Bank in Liechtenstein AG 

Bank of Tokyo International limited 

Bankers Trust International Limited 

Banque Bruxelles Lambert SA. 

Ranque de Paris et des Pays-Bas 
Berliner Handels- und Frankfurter Bank 
rhpffliral Bank International Limited 
Citicorp International Group 
Commerzbank AkdengesdUcba& 
Continental Illinois limited 
C redicanstalt-B ankverein 

Credit Commercial de France 
Credit Lyonnais 

Dai-Ichi Kangyo International Limited 
Den norske Credi thank 
Dresdner Bank AktiengeseUsdiaft 


Efiectenbank-Warburg AktiengesclLs chafe 
European Banking; Company Limited 
Genossenschafdiche Zentralban k AG 
Vienna 

Goldman Sachs International Coip. 
Hambros Bank Limited 
Kidder, Peabody International Limited 
Kredietbank International Group 
Lloyds Bank. International Limited 
London & Continental Bankers Ltd 
LTCB International Limited 
Manufacturers Hanover limited 
Mitsubishi Bank (Europe) S.A. 

Samuel Montagu & Co. Limited 
Morgan Guaranty Ltd 
Morgan Stanley International 
National Bank of Abu Dhabi 
Nippon European Bank S.A. 


Nomura International Limited 
Osterreichisclie Landerbank 
Osterreichische Volksbanken A CL 
Salomon Brothers International 
Sauwa Bank (Uudcnmtcrsj Limited 
Saudi Intemaiional-Bank 
Al-Bank Al-Saudi Al-Alami limited 
Standi naviska. EuskildaBankeii 
Sod etc Gcnerale 
Sodete Generate de Banque 
Sparckassen SDS 

Standard Chartered Merchant Bank Limited 
Sumitomo Finance International 
Swiss Bank Coxporation International 
Limited 

Takugin. International Bank (Europe) SA 
Yamaidu International i Europet Ltd 
ZcnLraIspaikas.se uil ri. Komra er y.ialbrmfc , Wfcn 


This advertisement appears as a matter of record only 


THE STATE ENERGY COMMISSION OF WESTERN AUSTRALIA 


US$ 22,000,000 

Term Loan. 


Guaranteed by 

THE STATE OF WESTERN AUSTRALIA 


Arranged by 

Credito Italiano 


Funds provided by 

Canadian Imperial Bank Group 

Commonwealth Trading Bank of Australia Credito Italiano London 

.The Fuji Bank, limited National Westminster Bank Group 

Standard Chartered Bank PLC 


Agent 

CREDITO ITALIANO LONDON 


Financial Times Friday May 14 1982 


Companies 


BS. INTL. COMPANIES & FINANCE 


-1 ‘ 

kit' 


Growth at Barlow Rand 


checked by lower margins 


BY THOMAS SPARKS IN JOHANNESBURG 


Such right may be exercised 
during the period iSrh March, 
1982, to 15th September. 1982. 
by surrender of the Note(s) 
duly completed and presented 
at the office of the Fiscal Agent. 

MERRILL LYNCH 
INTERNATIONAL BANK 


BARLOW RAND, the major 
South African, mini ng and 
industrial group, is starting to 
feel the effects of the country's 
economic slowdown and poor 
overseas demand for minerals. 


For the six months ended 
March group operating profit 
before interest and tax was 
R327m or 16.8 per cent 

higher than a year earlier. But 
first-half turnover grew by 18 
per cent to R2.49bn from 
R2.09bn. In the year ended 
September 30, 1981 -turnover 
was R4.57bn and operating 
profit R648.6m. 


Management said there was 
an overall reduction in margins 


as trading conditions became 
increasingly competitive. How- 
ever, not ail divisions and sub- 
sidiaries produced poorer 
results. The cement sugar, 
electronics,- motor and engi- 
neering supplies, fuel distribu- 
tion and packaging operations 
improved their performances. 

On the -other hand, the floor 
coverings, textiles, heavy equip- 
ment. building materials and 
appliance divisions all reported 
lower profits. The mining divi- 
sion suffered -from difficult 
trading conditions in -base 
mineral markets as well as 
lower dividends from the 
group’s gold mining invest- 
ments. In line with base metals, 


the ferro alloy and stainless 
steel operations experienced no 
improvement in their markets 
and their profits felL 


Merged 
Australian 
bank earns 


By bn Perkin Hi Melbourne 


The board expects trading 
conditions to worsen in the 
current six months. 


An unchanged interim divi- 
dend of 21 dents lhas been 
declared, though first half earn- 
ings rose to 87.5 cents a share 
from 86.1 cents a share. The 
board says that it is difficult to 
forecast second-half earnings 
but that it is intended to pay 
an unchanged total dividend of 
70 cents. In the year ended 
September 30, 1981, earnings 
were 204.7 cents a share. 


Sluggish first half at C. G. Smith 


BY OUR JOHANNESBURG CORRESPONDENT 


C. G. SMITH, the South African 
holding company with interests 
in sugar, floor coverings, pack- 
aging and food, and which is a 
51 per cent-owned subsidiary of 
Barlow Rand, put In a pedes- 
trian performance in the six 
months ended March 31. 1982. 
First-half operating profit be- 
fore tax, interest and dividend 
income rose by only 6.1 per 
cent to R98.7m (893.3m) from 
R93m. First-irslf turnover of 
R695.Sm was 12.1 per cent 
higher than the R620.7m of the 
corresponding period of 1981. 
In the year ended September 30 
1981. turnover was R1.25bn and 
operating profit R199m. 

The company’s main problem 
area was its 56 per cent-owned 


floor coverings subsidiary, 
Romatex, which reported a 12 
per cent drop in first-half trad- 
ing profit. Sales volumes and 
profit margins fell and an early 
improvement is not expected. In 
packaging, the . 59 per cent- 
owned Nampak does not expect 
to maintain its first-half growth 
rate because of the economic 
slowdown. 

The sugar division, on the 
other hand, enjoyed earnings 
considerably higher than in the 
previous year. There were size- 
able increases in cane and sugar 
production as well as a higher 
contribution from the chemical 
division. 

Crop prospects for the present 
season are good and earnings 


are expected to be maintained 
despite depressed world sugar 
prices. 

In the six months just com- 
pleted, sugar operations pro- 
vided 30.4 per cent of C. G. 
Smith's R6L66m after-tax profit 
Romatex provided 19.4 per cent 
Nampak 45.8 per cent and mis- 
cellaneous operations the 
remaining 4-3 per cent 

An interim dividend of 50 
cents has been declared from 
earnings of 124 cents a share. 
Last year the interim dividend 
was 45 cents and first-half earn- 
ings 106 cents. The year ended 
September 30 1981, resulted in 
earnings of 242 cents a share 
and a total dividend of 115 
cents. 


Plaza contract i Goodwood Park ahead 


for Hopewell 


BY GEORG IE LEE IN SINGAPORE 


By Wong Sulong in Kuala Lumpur 


HOPEWELL Construction Com- 
pany, part of the Hopewell 
Group of Hong Kong, has won 
a US$22.7m contract to build 
a shopping and apartment block 
for the Eastern and Oriental 
Hotel on Penang Island, 
Malaysia. 


The award calls for the build- 
ing of a nine-storey plaza, with 
a gross built-up area of 360.000 
sq ft for shopping lots, offices 
and car parks, and a 21-storey 
block of 82 luxury apartments. 


GOODWOOD PARK HOTEL, a 
major local hotel group, has 
reported a 21 per eent improve- 
ment In group pre-tax earnings 
to S$16.8m (DS$7Bm) for the 
six months ended March. 
Group turnover, however, fell 
12 per cent to S$33J2m. 

Goodwood said that the profit 
growth reflects a further 
improvement in the hotel 
industry during the six months. 
However, it warned that second- 
half business conditions may 
not be as buoyant, although 
results should be quite satisfac- 


tory. 

Goodwood disclosed that the 
results no longer include those 
of Ming Court Hotel which is 
now majority owned by the 
Malayan United Industries 
(MUI) group. 

The group declared an 
interim gross dividend of 
15 per cent. 

Its subsidiary. Hotel Malaysia, 
reported a 15 per cent improve- 
ment in pretax earnings to 
S$2.76m. Hotel Malaysia has 
also declared an interim gross 
dividend of 15 per cent 


THE MAJOR . Australia^ 
bank resulting, from - 
October’s merger of the :T ; 
National Bank of Austr&btssjt- 
and tiie Commercial IBank mg? 
Company of Sydney * hast 
reported a maiden net profit 
for the six months ended: 
March of ' A$8L35m 

The institution is waiting 
for final approval of its new 
name, the National .Commer- 
cial Banking Corporation of ' 
Australia. 

It is the first profit to be 
reported from either of the « 
two banking mergers now 
being completed in Australia, i 
The other Is the merger of the i 
Bank of New South Wales and - 
the Commercial Bank of 1 
Australia to form Westpae - 
Banking Corporation. : 

No direct comparison of the * 
National Commercial Rank’s ~ 
interim profit Is possible with £ 
previous periods because of 
the merger and the different * 
accounting periods of the two 
component banks. • The I 
National reported in March * 
and September (the dates : 
selected for the merged : 
group) while the Commercial : 
balance in December and ' 
June. > 

But in Issuing the interim 5 
results, the newly merged 
bank did produce some - 
roughly comparable figures. • 
These showed that while the - - 
National Bank's profit from ‘ 
banking was up 1 42 per cent - 
from A$39.3m to A$44_9m. ■ 
earnings at the Commercial \ 
Bank actually fell by 6.6 per 
cent from A$Z0m to AS28.7m. * 
For the finance subsidiaries, 
earnings at the National’s : 
Custom Credit Group were ; 
up 25.6 per cent from ; - 
ASZ0.14 jh to A$I2.74m and the ' 
Commercial’s Commercial and 
General Acceptance lifted ' 
profits by 52.S per cent from . 
A$2.8lm to AS4.3m. 

The merged group's total i 
revenues nearly doubled to 
A$1.12bn. 

Pressure on interest 
margins, together with in- . 
creases in operating costs, 
slowed profit growth In the 
banking companies. 

. Worthwhile growth in 
profits and receivables was 
achieved by the financial sub- 
sidiaries 

The board declared an 
11 per cent interim dividend. 


All these securities ha vind been sold, 
this advertisement appears as a matter of record only. 


April, 1982 


CREDIT EONCIER 


DE FRANCE 


{ Incorporated in France withiimited liability) 


^ m ^ 


Placing on a yield basis 


£ 50 , 000,000 

141 per cent Guaranteed Loan Stock 2007 


Unconditionally guaranteed as to payment of principal, 
premium, if any, and interest by 


The Republic of France 


Issue Price £99.393 per cent 


Morgan Grenfell & Co. Limited County Bank Limited 


Banque Indosuez 

Baring Brothers & Co., Limited 
Hambros Bank Limited 

Hill Samuel & Co. Limited 

Kleinwort, Benson Limited 

Samuel Montagu & Co. Limited 
S. G. Warburg & Co. Lid. 



April 1982 






V . 
■f - 






mit * 0 

Ltd- 


Financial Tines Friday May 14. 1982 _ 


SSp/.-JNTL. COMPANIES & FINANCE 



Mr Christian Olsen (left) , 
chairman and chief execu- 
tive of Lief Hoegh: “Some 
parts of the Norwegian flag 
are not competitive.” 
Hoegh is prepared to work 
“ in higger groups with 
good partners ” to 
safeguard its presence on 
important routes. 



Mr Arne Skauge (left) , 
Norway’s youthful Minister 
for Trade and Shipping in 
the new Conservative 
Government: “ We are 
trying to be flexible, so as 
to meet the demands of 
owners where there is a 
genuine business reason 
for flagging out.” 


Chill wind in Norwegian shipping 


NORWEGIAN SHIPPING com- 
panies, which control nearly 5 
per cent of the world fleet, are 
becoming more sceptical about 
the merits of their national flag. 
Not only is it increasingly costly- 
to operate under it, but ship- 
owner are worried about inter- 
national moves which could 
restrict their access to profit- 
able cargo routes. 

With world tanker and dry 
cargo rates at depressdngly low 
levels and showing no signs of 
lasting recovery, • companies are 
tending to fpllow three main 
policy lines: “flagging out” or. 
that .is, shifting some of- their 
fleets to cheaper and more con- 
venient flags; trying to reduce 
crews even further; and con- 
serving cash as . best they can. 

So far, Norwegian owners 
have not flagged out to any 
great extent But they would 
certainly like to and the issue 
has been well-aired in their 
boardrooms. The tonnage 
registered outside Norway is 
about 5 per cent of the fleet 
but could rise to as much as a 
quarter in the next few years. 

Since Norwegian ships 
already have some Of the lowest 
manning levels in the world, the 
seamen's union is unlikely to 
take a passive line on flagging 
out and crew cuts. It points 
out that manning levels in other 
countries are 25-50 per cent 
higher than in Norway. And 
while the fleet provided nearly 
70,000 jobs 15 years ago, there 
are now only about 26.000. 

Mr Henrik Aaserod, head of 
the union, has' said be sees no 
advantage to Norwegian ship- 
ping in the trend to foreign 
flags. In the long-term, he feels 
it could be unhealthy for the 
industry. But the major ship- 
ping companies see it as an 
essential part of their strategy 
for the 1980s and beyond. 

“Some parts of the Norwegian 
flag are not competitive," says 
Mr Christian Olserr chairman - 


and chief executive officer of 
Leif Hoegh. For older ships 
especially, he feels, operating 
costs are too high. As well 
as lowering costs, companies 
like Hoegh want to maintain 
their presence on important 
routes in the face of moves to 
squeeze them out. 


use our shipping know-how to 
build up their own shipping 
industries." be comments. With 
other shipping executives, he 
is confident that the new, con- 
servative government is on the 
-industry’s side. 

This view seems to be borne 
out by the comments of Mr 


Andrew Fisher, recently in Oslo, reviews the way In which 
Norwegians shipowners are reacting to the increasing cost of 
operating under their national flag, and to international moves 
threatening their access to profitable routes. The Norwegian 
seamen's anion, headed by Mr Henrik Aaserod, however, is 
unlikely to take a passive line on this or crew cutting 


It is therefore prepared to 
work “in bigger groups with 
good partners " to try to 
achieve this. Hoegh’s pro- 
gramme for new ships has been 
framed with such joint ventures 
in mind, with risk-spreading 
and international diversification 
its evident watchwords. 

“ Partnerships are funda- 
mental to gaining access.” 
argues Mr Olsen. Through 
Unetad (United Nations Con- 
ference on Trade and Develop- 
ment), developing countries 
want to have cargoes aDotted 
mainly between exporting and 
importing countries, with about 
a fifth left for cross-traders. 

Since only about a tenth of 
the Norwegian fleet of 38m 
deadweight tonnes trades iu and. 
out of Norway, the conse- 
quences of such protectionism 
for shipowners could be harm- 
ful. “We might have to go 
inside the fence in some 
countries,” he adds. In other 
words, Hoegh and other com- 
panies would have to go into 
new partnerships with countries 
wanting to build up their own 
fleets. 

“We are approached rather 
frequently by foreien groups in 
cither countries. They want to 


Arne Skauge, Norway’s 
youthful Minister for Trade and 
Shipping. “We are trying to 
be flexible so as to meet 
demands of owners where there 
is a genuine business reason 
for flagging out” Currently. 
companies cannot simply flag 
out on the basis of cutting 
costs, but have to obtain 
specific licences for each 
project 

These are granted where it 
is dear that access to certain 
markets would otherwise be 
closed, co-operation with deve- 
loping countries is involved, a 
foreign shareholder controls 
the cargo, or provides much of 
the equity, or if older ships 
marked up for eventual sale are 
used. 

But the Norwegian • Ship- 
owners’ Association wants such 
deals to be allowed purely on 
the basis of companies’ market 
strategy. Owners themselves, 
however, are not convinced 
that liberalisation will be taken 
far enough. 

Over the nexr five years, Wilh. 
Wilhelmsen, another major 
Norwegian shipping group, in- 
tends to flag out all of its bulk 
carriers, leaving the more 
sophisticated capital-intensive 


ships under the national flag. 
It has II bulk carriers, but is 
not happy about the outlook in 
this sector, as other worldwide 
owners are not. 

In its 1981 annual report, the 
group said the growth in the 
world bulk fleet and low econo- 
mic activity caused “concern 
over the development for the 
next few years.” But Wilhelm- 
sen, which is also engaged in 
liner, tanker and offshore 
activities, is looking to oppor- 
tunities in the nvre sophisti- 
cated car carrier market. 

Underlying its shipping busi- 
ness is a drive to maintain 
liquidity at as safe a level as 
possible. “In these turbulent 
times, we have to look more 
closely at cash flow thBn 
before,” says Mr lvar Lovald. 
the managing director. 

At Sig Bergesen D.Y., which 
has a new order book of nearly 
8350m. the cash position is also 
scrutinised closely. The group, 
strong in tankers as well as 
bulk and gas carriers, currently 
has some 8200m earning 
interest in international money 
markets and has invested in a 
property venture in California. 

Whether or not Norway’s 
shipowners get their way in 
flagging out or cutting crews 
further— the scope for more 
manning reductions is limited 
— they will continue to 
modernise their fleet. The total 
order book is around NKr 20bn 
(S3.3bn) and the average age 
of the fleet is just over seven 
years, one of the world's lowest 

But ownership is becoming 
more concentrated. Ten years 
ago. before the world shipping 
industry started to slump, the 
five largest Norwegian com- 
panies controlled 26 per cent 
of the Norwegian tonnage. 
Now, they have 36 per cent 
The trick for such owners now 
is to continue combining big- 
ness with flexibility. 



55 


Ail these Deposit Notes having been sold. 

this advertisement appears as a matter of record only. 


ra 


Bank of America 

National Trust and Savings Association 

at its Jersey Branch ' .'v- ; 

Up to U.S. $300,000,000 

12% Deposit Notes due April 15, 1987 
of which U.S. $200,000,000 is the Initial Tranche 

Issue Price of the Initial Tranche 901/2% - ■ : 


A7 


Alf those securities having been sold, 
this advertisement appears as a matter of record only. 


February, 1 982 


U.S. $100,000,000 

Continental Illinois 
Overseas Finance Corporation N.V. 

a wholly-owned subsidiary of Continental Illinois Corporation 

{ Incorporated with limited liability in the Netherlands Antilles) 

151 per cent. Guaranteed Notes due March 1, 1989 

Unconditionally Guaranteed as to Payment of Principal, Premium, if any, and Interest by 



Continental Elinois Corporation 

(Incorporated with limited liability in the State of Delaware) 




Morgan Grenfell & Co. Limited 


Bank of America International Limited 


Bank Brussel Lambert N.V. 


Bear, Steams & Co. Citicorp Internationa! Group 

Deutsche Bank Aktiengesellschaft " Kidder, Peabody International Limited 

Manufacturers Hanover Limited Merrill Lynch Internationa! SiCo. Orion Royal Bank Limited 
Shearson/American Express International Limited S. G. Warburg & Co. Ltd. 


Aiahli Bank of Kuwait (K.S.C.) 

Arab Bank Investment Company Limited 
Banca Commerclale Italians 
Banca del Gottardo 

Bank Gutzwiller, Kurz. Bungener (Overseas) 
Limited 

Bank Leu International Ltd. 

Bank of Tokyo International Limited 
Banque G6n6rafe du Luxembourg S.A. 
Banque de Paris et des Pays-Baa (Suisse) S.A 
Banque de I'Unfoj* EuropSenne 
Baring Brothers & Co., Limited 
Bayerische Hypotheken-und WecnsePBank 
Aktiengesellschaft 
Bergen Bank 
Cazenove&Co. • 

Compagnie de Banque et d Investisssments, 

CB! 

Credltlndustrief et Commercial 
Daiwa Europe Limited - 


Fuji international Finance Limited • 

Gefina international Limited 
Genossenschaftliche Zentraibank AG Vienna 
Girozentrate und Bank der bsterreichischen 
Sparkassen Aktiengesellschaft 
Groupement des Banquiers Prives Genevois 
Handeisbank N.W. (Overseas) Limited 
. Hess ische Landes bank Girozentrale 
Hill Samuel & Co. Limited 
Klein wort, Benson Limited 
hazard Freres & Co. 

The Nikko Securities Co., (Europe) Ltd. 
Nomura International Limited 
Nordic Bank Limited 
Rea Brothers Limited 
Sal. Oppenheim j r. & Cie. 

Scandinavian Bank Limited 
Skandinaviska Enskilda Banken 
Tokai Kyowa Morgan Grenfell Limited 
Versins-und Westbank Aktiengesellschaft 


Bank of America International Limited 

Arab Banking Corporation (ABC) 

Blyth Eastman Paine Webber International Limited 
Credit Suisse First Boston Limited 
Dresdner Bank Aktiengesellschaft 

Morgan Stanley International 

Union Bank of Switzerland (Securities) Limited 


Swiss Bank Corporation International Limited 

Banque de Paris et des Pays-Bas 
Continental I Hinois_Linnfted 
Deutsche Bank Aktiengesellschaft 
Lloyds Bank International Limited 
Salomon Brothers International 
S.G. Warburg & Co. Ltd 


All these securities having been sold, 
this advertisement appears as a matter of record only. 


u.s. $100,000,000 
Gulf Canada Limited 

(Incorporated under the laws of Canada } 

141 per cent. Notes due April 1,1992. , 


March, 1988 



Morgan Grenfell & Co. Limited. ' - 

Algemene Bank Nederland N.V. Bank of America International Limited Banque. Rationale de; Paris 
Citicorp International Group Merrill Lynch International & Co. . - . Morgan Guaranty Ltd 
Morgan Stanley International Orion Royal Bank Limited Salomon- Brother International 
Socl6t& Gdnerale de Banque S.A. Swiss Bank Corporation International Limited 
S. G. Warburg & Co. Ltd. Wood Gundy Limited 


Amro International Limited 
Arab Bank Investment Company Limited 
B.S.I. Underwriters Limited 
Bank Gutzwiller, Kurz, Bungener 
(Overseas) Limited 
Bank Leu International Ltd. 

Bank Mees & Hope N V 

Bank of Tokyo International Limited . 

Banque Bruxelles Lambert S.A. 

Banque Generate du Luxembourg S.A. 

Banque de Paris et des Pays-Bas (Suisse) S.A. 
Bayerlsche Hypotheken-und Wechsei-Bank 
Aktiengesellschaft 
Bayerische Landesbank Girozentrale 
Bear, Stearns & Co. 

Chase Manhattan Limited 
Chemical Bank International Group 
C1BC Limited 

Commerzbank Aktiengesellschaft 

Compagnie de Banque et d’lnvestissements, CB1 

County Bank Limited 

Credltanstalt-Bankverein 

Credit Industriel et Commercial 

Credit Lyonnais 

Daiwa Europe Limited 

Dominion Securities Ames Limited 

Dresdner Bank Aktiengesellschaft 

First Chicago Limited 

Gefina International Limited 

Genossenschaftliche Zentraibank AG Vienna 


Girozentrale und Bank der dsterreichischen Sparkassen 
Aktiengesellschaft 
Goldman Sachs International Corp. 

Groupement des Banquiers Prives Genevois 
Hambros Bank Limited 
Hill Samuel & Co. Limited 
Kidder, Peabody international Limited 

KredietbankN.V _ 

Kuwait International Investment Company (S.A.K.) 
Kuwait Investment Company (S.A.K.) 

Lazard Brothers & Co. Limited 
Lazard Freres & Co. 

McLeod Young Weir International Limited 
Mitsubishi Bank (Europe) S.A. 

Samuel Montagu & Co. Limited 
The Nikko Securities Co., (Europe) Ltd. 

Nomura International Limited . 

Pierson, Heidring & Pierson N.V. - " .. ; 

Richardson Securities of Canada (U.K.) Limited 

J. henry Schroder Wagg& Cor Limited 

Skandinaviska Enskilda Banken 

Smith Barney, Harris Upham & Co. Incorporated 

Strauss Tumbull-& Company 

Sumitomo Trust International Limited 

Svenska Handefsbanken 

Tokai Kyowa Morgan Grenfell Limited 

Union Bank of Switzerland (Securities) Limited 

Verband Schweizerischer Kantonalbanken 

J. Vohtobel & Company •. : 

Dean Witter Reynolds Overseas Limited 






i 





36 




Compares and Markets 


NEW YORK 


ACF Industries...! 

AMF i 

AM Inti i 

AHA.. i 

ASA- 

AVX Gorp 

Abbot Labs 

Acme Cleve 

Adobe Oil & Gas. 
Advanced Micro. 
Aetna life & Gas- 
All mam son lH.F.1, 
Air Prod ft Cham- 

Akxona. - 

Albany Int 1 

Alberto-Culv. I 

Albertson's | 

Alcan Aluminiu mi 
Al co Standard....! 
Alexander ftAl.J 

Alegheny Int i 

Allied Corp 

Allied Stores 

Aiiia-Chaimera,...i 
Alpha Portd | 


Alcoa. I 

AmaJ. Sugar. • 

Amax_ 

Amdahl Gorp 

Amerada Hess.... 

Am. Airlines. 

Am. Brands — 

Am. Broadcast's; 

Am. Can I 

Am. Cyanamid.... 
Am. Elect. Powr. 
Am. Express 
Am. Gen. Insnce.l 
Am. Hoist ft Ok... 1 
.Am. Home Prod..: 


Am. Hosp. Suppy: 
Am. Medical Intl.l 


Am. Motors 

Am. Nat. Resces .1 

Am. Petfina ! 

Am. Quasar Pet- 1 . 


Am. Standard 

Am. Stores 

Am.Tel.&Tel 

Ametekfne 

Amfac.— 

AMP 

Amstar 

Am stead Inds..-. 
Anchor Hoc kg.... 
Anheuser-Bh — 
Archer Daniels... 
Arm co 


Armstrong CK..... 

AsameraOil.. 

Asareo 

Ashland Oil 

Assd.D. Goods.... 

Atlantic Rich 

Auto- Data Prg.... 

Avco 

Avery Inti 1 


Avnet 

Avon Prod 

Baker Inti 

Balt Gas ft El 

Ban Cal 

Bangor Punta .. 
Bank America .. 

Sank of K.r 

Bankers Tst N.Y 

Barry Wright 

Bausch’ft Lomb 
BaxtTrav Lab... 
Beatrice Foods.. 

Beker Inds 

Bell ft Howell .. 
Bell Industries .. 

Bendix 

.Beneficial 


471s 473 b 
aS5e 253a 
33 32 is 

265* 265* 

225a 223* 

175s ITSe 
ibsb is; b 
40"b 40 <a 
321* 32 i a 

165* 15 Ig 

463* 461b 

361* 363a 

lflia 193a 
61 b eaa 
215* 22 

175b 173s 

545b 844 

18 r B I 1B7 B 


Beth Steel \ 

Big Thee lnds....J 
Black ft Decker..) 

Block HR 

Blue Bell > 

Boeing. 

Boise Cascade.... 

Barden | 

Borg Warner 

Braniff Inti 


Briggs Stratn ..... ( 
Bristol-Myers i 


Bristol-Myers i 

BP 

Brockway Glass.l 
Brown Forman B; 

Brown Grp 

Brown ft Sharp... 
Browng Ferns.... | 
Brunswick I 


Bucyrus-Erle i 16 k 

Burlington Ind ... 23k 
Burlington Nrthn 903a 

Burndy ... 184 

Burroughs 36Se 

CBI Inds 3B6 b 

CBS 44 

cpcintl *7i* 

CSX 455b 

' Campbell Red L. Ilk 
Campbell soup... *7 is 
Campbell Tagg .. 234 
. Canal Randolph. S75e 

• Can. Pacific 82 ju 

■ Carlisle Corp — i 26k 

-Carnation- ■ 32 k 

: Carp Tech ! *7 


Carter Hawley ...i 

Caterpillar j 

Celanese Corp...| 

Contel , 

Centex 

Central ft Sw ! 

Central Soya 

Certain-teed 

Cessna Aircraft..) 
Champ Home Bldl 
Champ Int. I 


Champ sp Plug..] 

Charter Co i 

Chase Manhattan 

Chemical NY 

Cheese Pond | 

Chicago Pneum-i 

Chrysler- - 

Chubb I 


Cigna -.[ 

Cincinnati Mil ...J 

Citicorp i 

Cities Service...... 

City Invest. | 

Clark Equipment 
Cleve Cliffs Iron.: 

Clorox 1 

Clueltt Peaby ....; 

Coca Cola. 

Colgate Palm 

Collins Aikman...: 
Colt Inds — 


46k 46k 

235 B 237& 

28 28k 

36sa 36 k 
24 7 B ; 25 k 
217 B : 21 
22 k 1 22 
14k | 14la 
16k I7I B 
343s ; 34k 
177J : 18 
13 k | 135 b 
36k i 265e 


H'meBnds. 69.931 60 . 


May I May 
12 11 


Columbia Gas 
Columbia Piet....; 
Combined Intv.. 
Combustn. Eng.. 
Cmwith. Edison. 
Comm. SatelitO-l 


333s 53k 

71 71k 

a27 S S3 
30k 39k 

22k ! 22k 
63k I 60k 


Comp. Science.,.1 

Cone Mills 

Conroe 

Cons. Edison 

Cons Foods 

Cons Freight 

Con. NaLGas 

Conumer Power, 
Cont Air Lines.-! 

Conti. Corp 

Conti. Group 

Cont. Illionia I 

Conti. Telep j 

Control Data •; 


Cooper Inds j 

Coors Adolph 

Copperweld 

Corning Glass .... 
Corroon Black.... 
Cox Broadcast's 

Crane - 

Crocker Nat. 

Crown Cork ...... . 

Crown Zell 

Cummins Eng ... ' 
Curtiss- Wright ... 

Damon 

Dana 

Dart ft Kraft 

Data Gen 

Dayton-Hudson J 

Deere- -I 

Delta Air...- 

Denny's i 


Dentsply Inti 

Detroit Edison— 

Diamond Inti 

Diamond Shank- 

DIGIorgio J 

Digital Equip j 

Dillingham i 

Dillon I 

Disney Walt) I 

Dome Mines 

Donnelly (RRl | 

Dover Corp 

Dow Chemical ..., 

Dow Jones 

Dresser 

Dr. Pepper 

Duke Power 1 

Dun ft Brad j 

Du Pont 

EG ft G 


Easco. — 

Eastern Airlines. 
Eastern Gas ft F. 
Eastman Kodak.. 

Eaton ; 

Echlin Mfg 

Eckherd Jack.....| 
Electronic Data. 
Elect. Memories. 

El Paso 

Emerson Elect- 
Emery Air Fgt- ... 

Emhart 

Engelhard Corp.. 


Enserch I 

Esmark. 

Ethyl - 

Evans Prod 

Ex Cell O 

Exxon - 

FMC -| 

Faberge i 

Fedders . .. 

Federal Co 

Federal-Mogul... J 
Fed. Nat. Mort.... 1 
Fed. Paper Brd...| 
Fed. Resources.. 
Fed. Dep. Stored 

Fieldcrest Ml I 

Firestone | 

1st Bank System, 
1st Charter Fin..! 


22k i 22k 
46 k ) 46k 
20k 20k 

1058 10k 

25 k i 22 k 
293a | 89k 


27k 87Sa 
183s | 183 b 


3/s 33* 

223* ( £3 


21 l 21 

Ilk 11 


25 ! 251* 

lk lk 
437a 44 

247 8 243* 

11 10k 

323* 323* 

113* Ilk 


1st Chicago. I 

1st City BankTex) 

1st Interstate 

1st Mississippi.... | 
1st NaL Boston... 

1st Penn I 

Fisons 

Fleetwood Ent... 

FI ex i - van 

Florida Pwr ft L.. 

Ford Motor 

Foremost Mck.... 
Foster Wheeler... 
Freeport McM.... 

Fruehauf , 

GAF 

GATX. I 


Gannet j 

Gelco I 

Gen Am Invest..., 

Gen Cinema 

Gen Dynamics ... 

Gen Electric 1 

Gen Foods i 

Gen Instruments 

Gen Mills 

Gen Motors 

Gen Pub Utilities! 

Gen Signal 

Gen Telep Elec... 

Gen Tire 

Genesoo - 


Genuine Parts... 

Georgia Pac. 

Geosource - 

Gerbes Prod 

Getty Oil 

Giddcns Lewis... 

Gillette 

Global Marine..... 
Goodrich i BF\. . 
Goodyear Tire— 

Gould „ 

Grace 

Grainger (W.W)... 


Gt. Atl.Pac.Tea. 57 8 
Gt Basins Pet.... 25s 

Gt Nthn Jiekoesai 35k 
Gt. West Flnancl. 13 k 

Greyhound 14 

Grumman - 27 

Gulf ft Weston.... 15k 


Gulf Oil.—, I 

Hall (FB) 

Halliburton | 

Hammermill Ppr, 

Handleman ( 

Hanna Mining .... 
Harcourt Brace J 

Harris Bancp ] 

Harris Corp • 

Harsco I 

Hecla Mining 

Heinz IHJj 

Heller Inti...- 

Hercules 

Kershcy _! 

Heublein ! 

Hewlett Pkd. 

Hilton Hotels. 

Hitachi | 


Holiday Inns. 

Holly Sugar 

Homestake 

Honeywell 

Hoover.... 

Hoover Uni 

Hormel Geo.V— 
Hospital Corp..... 
Household Inti— 

Houston Inds 

Hudson 1 Bay Mng. 

Hughes Tool 

Humana 


Husky Oil 

Hutton (EFt 

1C Inds. 

IU Int 

Ideal Basle Ind... 

Ideal Toy 

ICI ADR 

Imp Corp Amer.. 

INCO. 

Ingersol Rand .... 

Inland Steel 

Intel 

Inter First Corp- 

Interlake i 

Inter North 

IBM I 


inti. Flavours 

Inti. Harvester.... 
IntLIncome Prop 

Inti. Paper 

Int Rectifier. 

Inti. Tel ft Tel 

Irving Bank.. 

James (FS) 

Jeffn- Pilot 

Jewel Cos. 

Jim Walter. 

Johnson- Contr._ 
Johnson ft Jns— 
John than Logan. 

Joy Mnf. 

K. Mart — 

Kaiser Alum 

Kaiser Steel 



Mfcrs Hanover 
Manvllle Corp. 


35 k 1 35 k 
53k I 34k 


46i 882ft2 79S.47 1061.78 41.22 

l«.’l> (8/5) Ohll73) (1/7/58) 

68.74 60.86 66.67 — , — 

' 1 10/51 (12/2) I 


Trans port- !360.7B| 562.8*1 348.53 ; 362.90: 352.9?|348ftS: 599.46 514.56 ' 447.58 ' 12.32 

III ; , 1 (7/11 (8/5i (16)4. 'SI) (8/7)5! 

Utilities— '1I8.76 ; 1 IE Ji; 116.58! 116,95| 1T8.42 j114.79 : 116.95 103.61: >83.52 10.5 

i ! I I j ; <7/51 dill) (20/4/69) (29/4/42) 


Financial Times Friday May 14 1982 


WORLD STOCK MARKETS 


; 5 



I May 

I May 


| May 

May 1 

Stock 

( 12 

I u 

l - 

Stock 

1 « 

11 1 


MGM | 

Metromedia 1 

Milton Bradley ... 
Minnesota MM... 

Missouri Pao 

Mobil 

Modern Merchg 

Mohasco. - 

Monarch M/T — 

Monsanto- 

Moore MoCmrk.. 

Morgan (JP) 

Motoroio 

Munsingwaar.— 

Murphy (GCi 

Murhy Oil - 

Nabiaco Brandt* 
Nalco Cham- 


Schtrtz Brew > 

5ch lumbers er....j 

SCM 

Scott Paper I 

Sea con — j 


Seagram... 
Sealed Poi 


Sealed Power .... 

Sea lie (CD).. 

Sears Roebuck ... 

Security Pac. 

Sad co- 

Shell Oil 

Shell Trans .... 

Sherwln-Wms 


Signal — — — — I 

Si g node ....—l 


Napoo Industries 

Nat. can 

Nat. Detroit. 

Nat. DIsLChem.. 

Nat. Gypsum 

Nat. Medical Ent 
Nat Semlcductr. 
Nat. Service Ind. 
Nat. Standard.... 

Nat. Steel 

No to mas 

NCNB 



Simplicity Patt.,.1 87 S 
Singer i 13k 

Skyline ; 15k 

Smith inti i 52 k 

Smith Kline Back! 68k 

Senesta Inti : 9 

15k 
1658 

523* 
127 a 
27 Gb 
46 
33k 
94 k 
33 
24k 
27 k 
27k 


Std Oil CUfomia. 
Std Oil Indiana— 

Std Oil Ohio 

Stanley Wks. 

Stauffer Cham... 
Sterling Drug— 

Stevens (J.P.) 

Stokely Van K .... 
Storage Tech ..... 

Sun Co. - 

Sund strand 

Superior Oil 

Super VaJ Strs.... 

Syntax. 

TRW— 

Taft 

Tampax. .....! 


Outboard Marine' 25 
Overseas Ship.— : l&k 
Owens-Coming _ 19k 
Owens-Illinois.... 267 B 

PKH Group 215 b 

PPG inds 34 k 

Pabst Brewing... 21aa 
Pac. Gas ft Elect. 23Se 
Pac. Lighting -... 23Sg 
Pac. Lumber 1954 


Pao. Tel. ft Tel. 

Palm Beach 

Pan. Am. Air 

Pan. Hand Pipe... 
Parker Drilling _ 
Parker Hanfn. .... 
Peabody Inti— ... 

Penn Central 

Penney (JO 

Pennzoil ... 


19k ' 19k 
16k 16k 

4k 4 
54 k 34 k 
147a 15 

18k 164 b 

6k 8k 
29k 283* 

3678 35k 

40 593* 


Tandy -I 2Bk 

Teladyne —.11 163 b 

Tektronix 54 

Tenneeo I 28 k 

TeaoraPet j 815* 

Texaco 313* 

Texas Comm. BK. 35k 
Texas Eastern — 49 k 
Texas Gas Tm ... 27 
Texas Instrm'ts 89k 
Texas Oil ft Gas... 523* 
Texas Utilities — 23k 

Textron 23 k 

Thermo Electro 15k 
Thomas Betts ...| 51 

Tidewater 26 

Tiger Inti — • 95 b 

Time Inc 34k 

Timas Mirror ! 43k 


Bk 
38k 
203* 

23k 

16k ! 16k 
66k 
26k 


647 B i 643* 



|J 




Iti 

=| 



Vemltron - — I Ilk I 114 


I Mattel ! 

1 May Dept. Strs...) 

19’ a 
294 ! 

) IS 
! 294 

Maytag | 

275* i 

! aaw 

McCulloch i 

10 U 

104 

McDermott (JR)..I 

28k! 

264 

McDonalds ! 

654 

1 664 

McDonnell Dougi 

35 

1 355* 

McGraw Edison..) 

30 i 8 

1 294 

McGraw-Hill ( 

544 ! 

1 54 

McLean Trukg ... 

13 

1 13 

Mead | 

20 

( 194 

Media Genl ! 

384 

1 38 

Medtronic ..j 

443b 

1 454 

Mellon Natl 1 

34 

344 

Melville 1 

4769 

, 477 8 

Mercantile Sts.. , i 

615* 

, 62 4 

Merck 

76 

763* 

Meredith 

60 t S 

I 604 

Merrill Lynch ,.j 

204 

1 29 


Virginia EP I 

Vulcan Matris .._i 
Walker <H) Res...' 
Wal-Mart Stores.: 

Warnaco — ! 

Warner Com ms,. 
Wamor Lambt..., 
Washington Post. 
Waste Mangt -...! 

Weis Mkts 

Wells Fargo- i 

W.Polnt PcppL...! 
Western Airlines' 
Westn. Nth.Amr, 
Westing house.... 

Westvacc 

Weyerhaeuser— 


Wheelobratr F...J 
Wheeling Pitts ... 

Whirlpool -...[ 

White Con so ltd.. 

Whittaker 1 

Wickes ; 

Williams Co- ! 

Winn-Dixie Str.—| 

Winnebago — ■ 

Wise Elec Power 

Wool worth — 

Wrigley 


344 33k 

174 16k 

29 k 30 
28k 28k 

26 k 26k 
3 3 

20 k 20 k 
5670 i 37 
63* 6Ss 
317 B 32k 

194 I 20 
31k ] 31k 


■ar| 

May 

12 

vj 

620.4 

526.3 

616.4 ■ 


TradingVol' : ; ; i i 

000-t 159^10 54,8 m' 46,560 , 67,158, 67,640 68,880'. — 


BELGIUM 

Belgian SE (5U12/85) 


98.42 (28/1) 


• Day's high 874.52 low 857.92 


Ind. div. yield X 


May 7 

April 30 

April 23 

Year ago (Approx 

6.42 

6 .58 

6.47 

5.71 


FRANCE 

CAC General <51/12,'91| 
Ind Tendance (51/12/81) 



GERMANY i 

FAZ-Aktlen (51/12/66) I 250 JMi 251 .96 
CommerZbanWDeclSSX 701.4 I 704 A 


21956 (18/ T) 
669.7 (18/1) 


HOLLAND 
ANP-CBS General 0972) 94.0 

ANP-C8S Indust (1970) 75.8 , 


S5.B m/8) 

74ft (10/6) 


84ft (8/1) 
86ft (4/1) 


ind. div. yield X 


April 28 | April 21 I Year ago (approx) 


HCNG KONG | 

Hang Seng Bank (51/7/0 4 |T5B5.a5 1587.55 1591.28 1577.561 

ITALY j T I j" 

Barca Comm KaUlSK) j 1B2JS9; 186.5Q IBSftOj 186.62/ 


I44&ft2 (12/1) 1129,88 (9/5) 


212.86 (19/5) j 181.46 (15/1) 


Ind. PiE Ratio 


Long Gov. Bond yield 


JAPAN** ' 1 I 

Dow Average (16(6/45) :7B03.21'7659.79'7B58.12)7&B4.59 
Tokyo New SE <4/1/60/ 662ft8| 6B7.04' M7ftS| &S9.&4i 


7826 ftfi (27/1) 
S83ft9 (27/ T) 


, 6888ft 5 (17/Xj 
, 620.70 (17/3) 


NY. S.E. ALL COMMON 


Rises end Falls 

May 12 May 11 May 10 


NORWAY 
Oslo SE (1/1(72) 


125.58; 121.94' 121ft8 121.62] 138.59 (26/T) . 109.12 (1/4) 


May May I Btey ! May , 
12 II , 10 i 7 


Hlafi Low Rises. — — — — r 678 
mgn low pa||8 — 782 


6&69.68.S0 1 6S,22 63.7 6j 71ft0 I 62.52 Unchanged > 431 467 426 

, ij/ii (12/5) New Highs. I B7 4a 45 

1111 wn 1 New Lows I a 13 16 


1,885 

1.914 

914 

475 

5Z2 

1,013 

457 

426 

45 

48 

IS 

16 


SINGAPORE 
Straits Times rises) 


785.77' 778.85i 777 JO i 778ft l ! 810.78 (6/1) I S87.4S (8/3) 


SOUTH AFRICA 
Gold (1S58) 
Industrial ( 1868 ) 


lu) 412.9 410ft 414.4 

(U) 692ft 684.B 69Sft j 


669.3 (6/1) 
711.7 <BM| 


410.6 (11/E) 
665.5 (29/5) 


MONTREAL 


May I May May 
12 | 11 10 


SPAIN 

Madrid SE (59/12/81) 


181.561 101 Jfl 181.12! (c) 187.46 (8,2) ] 93.17 (6/1) 


Industrials 292.21 292ftfi 235.26' 235.87 iS2.T2 (4.11 
Combined 274.06 274ft 1 267.88 SESftB 51BJR 14.1) 


TORONTO Composite! IBBB.Sl 1692.61 1665. 1 1 1644.5 | 1956.5 14.1) \ 1626.6 i6(Sj 


278,46 (16,5) 
S9ft8 (16ft) 


SWEDEN 

Jacobs o n ft P. D/U&8) 


685.691 685.73 5B2.86 BB.62 (22/1) 665.52 (28/4) 


SWITZERLAND ! i 

Swiss BankCpn.(3I/12/68) 2S6.9 | 2ttft SS.4 j 267ft 


265.1 (11/1) 242.5 (11/5) 


.Wednesday Stocks Closing on 
traded price day 


NEW YORK ACTIVE STOCKS 

Change 


Change 

Stacks Closing an 
traded price day 


WORLD 

Capital Inti. (1/1/70) 


— I 140ft I 149-6 j 140.0 1 147ft 14/1) 


General Mmora 1.897.500 45 -MS’ Tandy' 726.2GO 23« s - k 

Etxon 1.050.300 29* - ** Fret. Chrtr. Fin. 552,300 IU. '+ ». 


Daiapoint SS2.70O 12 1 * Duke Power ... 611800 23k - k 


Storage Tech... 770.700 24*i — Ford Mdioi ... 566.000 24'/ +1 


Cons. Power .. 766,700 18*§ + \ Sears Roebuck 564.500 20^ + 


Wall St mixed at midsession 


AIRLINE STOCKS were the 
centre of attention on Wan 
Street yesterday morning follow- 
ing Braniff International’s bank- 
ruptcy announcement, while the 
rest of the market was mixed 
in fairly active trading. 

The Dow Jones Industrial 
Average eased a slight 0.19 to 
865.58 and the NYSE All Com- 
mon Index 2 cents to 968.67 at 
1 pm. Gains held a marginal 
lead over declines of about 20 
sliares, while trading volume 
totalled 40.39m shares, against 
Wednesday’s 1 pm figure of 
45.46m. 

BranifTs Chapter 11 filing, and 
its announcement that all its 
flights have been suspended, led 
to speculation cm Wall Street 
about which Carriers will pick 
up BranifTs passengers. 

Analysis said American Air- 
lines and Southwest Airlines 
may be the immediate winners, 
since they compete directly with 
Braniff on many routes. Trading 
in both issues was halted yester- 
day morning for an order im- 
balance. but Southwest opened 
just before mid-day with a gain 
of Sit to $38;. 

Delta, one of the more finan- 
cially healthy Carriers, was the 
second most active issue and 
advanced S2i to $31*. Also 
active was Tranewoijtl, up $1 to 
$21 and Pan-ARn, unchanged at 

Usair rose Si to S15f, North- 
west Sli to $29| and UAL Si to 
$19*. 

Cigna dropped $4* to $415 on 
heavy volume after a delay in 
trading. The comoany, recently 
formed through a merger of 
Connecticut General and IN A. 
reported sharply lower first- 
quarter earnings. 

THE AMERICAN SE Market 
Value Index gained 1.10 to 
281.28 at 1 pm. Volume 3.15ra 
shares. 


Estate issues backtracked, but 
Golds showed some finning. The 
Toronto Composite Index was 
off 7.3 at 1.578.7 on turnover cf 
2.06m shares. Oil and Gas feU 
13.8 to 2.846.1, Real Estate 37.9 
to 3,674.3, but Golds rose 14.9 
to 2 , 100 - 6 . 


Tokyo 


Canada 


Stocks were mainly lower at 
mid-session as Oils and Real 


Closing prices for North 
America were not available 
for this edition. 


A strong performance by many 
export - orientated Blue Chip 
issues featured the Tokyo market 
yesterday. 

The Nikkei-Dow Jones Average 
moved ahead 63.43 to 7,603.21 
and the Tokyo SE index 5.25 to 
562.29. However, gains through- 
out the First Market only 
exceeded declines by 323 to 277, 
while volume was a moderate 
280m shares and not a great deal 
above Wednesday's 230m. 

Behind the Blue Chip surge, 
trades said, was a growing feel- 
ing that pressure on Japan to 
further restrict exports and ease 
trade frictions might not inten- 
sify. There had been fears here 
that tbe U.S. and the European 
Community would ask Japan to 
control exports at a series of 
international meetings this week. 

One trader commented, how- 
ever, that "judging from what 
happened at the trilateral trade 
conference in France, a lot of 
people now think that this is not 
going to happen." He was .refer- 
ring to a meeting of representa- 
tives of the U.S., Japan, the EEC 
and Canada this week in which 
the participants were reported 
to have agreed to avoid steps 
that would impede free trade. 

News that U.S. retail sales 
picked up in April also raised 
expectations that the pressure 
on Japan might ease and that 
Japanese exports to tbe U.S. 
might increase. 

A Japanese press report that 
Toyota Motor’s pre-tax earnings 
may set a record in the fiscal 
year ending in June helped to 
send the shares up Y60 to Y1.100 
and also boosted other Motor 
issues. Honda climbed Y29 to 
Y7S0 and Nissan Y7 to Y832. 

Light Electricals, Precision 
Instruments, Heavy Electric 
Machine Makers, Steels and 


other market leaders . made 
strong gains, also encouraged by 
chart considerations. 

Hitachi rose Y24 to Y683. 
Toshiba Y12 to Y361. Sony Y120 
to Y3J570, Victor Japan Y140 to 
Y2.400. Sumitomo Metal Y8 to 
Y1S0, Nippon Steel Y3 to Y166. 
Canon Y23 to YS98 and Olympus 
Y42 to Y942. 

However. Pioneer Electric shed 
Y30 to Y1.450 in anticipation of 
relatively poor earnings results 
due to a slowdown in demand for 
audio equipment and video discs.' 


Germany 

Most shares closed easier after 
modest turnover as investors 
remained in cautious mood, 
with sentiment still depressed by 
Wednesday’s discouraging re- 
ports from AEG and BASF. The 
Commerzbank index shed 3.1 to 
701.4. 

Electricals issue AEG, which 
bas announced continuing high 
operating losses, fell on selling 
by small shareholders to a record 
low of DM 35 before recovering 
to close DM 3.90 down at DM 36. 

In Chemicals, BASF fell to 
DM 127 on the news of a sharp 
fall in first-quarter parent com- 
pany profits, but rallied to 
end only 30 pfeDDigs lower at 
DM 12830. 

In contrast. Engineerings bene- 
fited from" foreign buying, 
Deutsche Babcock adding DM 2 
at DM 196 and GHH DM 2.30 
at DM 186.80. 

Conti Gurami. not optimistic 
about 1982 dividend prospects, 
lost DM 1.80 to DM 5L 

Australia 

Profit-taking by local and 
overseas investors concentrated 
in some Heavyweight Resources 
issues halted the market's rally 
of recent days. 

Market observers said' Asian 
investors stayed out of the 
market for the first time this 
week, adding to the day’s losses. 
However, a belief among soe 
traders that Interest rates have 
peaked tended to push Industrial 
stocks higher. Also, a number 
of Oil and Gas issues were 
firmer as dealers anticipated 


further good news from the 

drilling rigs. 

The All Ordinaries index, 
which advanced S.9 on .'Wednes- 
day, lost 4.9 at 520.4. Metals 
and Minerals retreated 11.0 to 
384.6' on index, although Oil and 
Ges was - only 1.3 down at 4B2.3, 
while the All Industrials index; 
gained 1.4 to 673.7. 

One of the major casualties 
of the session was Western 
Mining. Which fell 25 cents to 
AS3.75 after Esso said that it 
would pull out of the Yeelirrie 
uranium prospect This is toe 
third major prospect Esso has 
walked away from in recent 
weeks and the second in 
Australia. 

Elsewhere m Minings, MM 
weakened 20 cents to AS3.25, 
CRA 10 cents to A§3J25 and 
North BH 7 cents to AS2. 13- 

Res ourees- related issue BHP 
receded 22 cents to ASS.20, as 
did CSR to AS3.30, but Vamgas 
put on 14 cents to A$8.00. 


v\i vV - 

to* 


Amsterdam 


The continuing Dutch Govern- 
ment crisis following the 
resignation of Labour ministers 
had a depressing effect on share 
prices. 

Minor losses were seen across 
a broad front, while Inter- 
nationals and Insurers showed 
slightly larger declines. 


Hong Kong 


Stock prices . mainly improved 
in early dealings, but then came 
under some profit-taking 
pressure to close mixed to easier 
on balance after a reasonable 
business. 

The Hang Seng index finished 
a modest 13.50 down on the day 
at 1.3S3.S5. Combined turnover 
on toe four exchanges came to 
HKS329.99m, compared with the 
HKS227.76m traded in the short 
Wednesday session. 

Jar dine Matheson stood out 
among the Hongs, holding an 
advance of 70 cents at HKS20.70. 
Analysts said the movement 
resulted from fundamental fac- 
tors and buy recommendations 
from several brokerage houses. 



JAPAN (continued) 

I Price ’ + or 
May 13 I Yen 1 — 


Inter. Pipe. 


Mac Bloedel I 

Marko ft 8 pence rl 

Massey Ferg I 

McIntyre Mines... 
Merland Exp1or..i 

Mitel Corp i 

Moore Corp I 

Nat. Sea Proda A| 
Noranda Mines... 


SOii | 206s 


U j I0i« 
3.05 1 3.06 
50 j 30 
6.37 5.37 

203* ! 20Sfl 
37 T B | 38>* 
7i f ; 7J* 

156s ! 15 >s 


Nthn. Telecom...! 
Oakwood Pet 


Pacific Copper...] 
Pan Can Petrol -I 

Patino 

Placer Dev...„.... 

Power Corp* 

Quebec Strgn.. M ., 


66 | 553* 

107 t | 103* 
1.76 I 1.78 
68l| i 67 
16 | 18 
125 b 12 

11 US* 
1.45 > 2.45 


696.6 (4/1) 

455ft (10/8) 

4S.1 (5/1) 

322ft (2/4| 


Ranger Oil I 

Reed Stenhm A 

Rio Aigom | 

Royal Bank 

Royal TrustcoAJ 

Sceptre Res. , 

Seagram 

Shell Lao Oil j 

Steel of Can A.. J 


B I Bis 
113* l 116* 
54 Lt j 34 
913* i 813* 
15 | 13 U 

6U 6i* 
671* ! 68 
17 I 163* 
21 l B { 203* 


Teck B ■ 

Texaco Canada..] 
Thomson News A! 
TorontoDom Bk.i 

TransCan pipe 
Trans Mntn.OilA 
Utd. si sco Mines 
Walken HiRes.. ..i 
Westcoat Trans..! 
Weston (Geo) i. 


ITALY 

May 13 

: 

Price + or 
Lire — 

Aaskuir Gen_ 

BanoaCom’le.... 

Bastogl Fin 

Cerrtraie 

Cradlto Vareaino 

Flat — 

Finsider. 

Invest- 

ftai com anti- 

Italsidar 

Montedison 

156,100 —900 
84,000 —1000 
153 —4 
4,410 +20 
7,550 -75 
1.705 —11 
35.50 — 4ft6 
2,502 -SB 
33,995 —505 

120tf 

115.75 -1.26 

Pirelli Co 

Pirelli Spa ......... 

Snia Vlseosa 

Toro Assic. 

do. Pref 

2,590 —13 
1.340 —20 
635 —10 
14,510 -380 
11.999 -202 




HONG KONG 


May 15 • Price ! + or 

iH.K.S. — 


SWEDEN 


May 13 ■ Price J + or 

iKronerl — 


AUSTRIA 


Priee + or 

S 


Creditanstalt | 913 

Landorbonk / 183 +1 

Pcnmooscr ! 299 

Semporlt 72 

Steyr Daimler 160 

Veit&eher Mag .. , 200 



AGA ' 

Alfa Laval : 

A8EA I 

Astra ■ 

Atlas Copco. 

Bollden ,.„( 

Cellulose I 

Electrolux B i 

Ericsson ■ 

Esselte(Free) | 

Fag e rata | 

FortJa (Free) | 

Mo och Dorn i 

Saab - Skanla. I 

Sandvik (Free)~..j 

Skandla. 

Skan EnskHda-.J 

SKFB. I 

St Kopparberg...; 
Sven Handelsbn.i 
Swedish Match-! 
Volvo (Free]- i 


Cheung Kong^_ 

Cosmo Prop j 

Cross Harbour... i 
Hang Seng Bank. 

HK Electric™ ( 

HK Kowloon Bh..| 

HK Land ; 

Hk Shanghl Kk... 
HK Telephone.... 
Hutchison Wpa... 
Jardfne Math..,. 
New World Dev..' 
O'seas Trust Bk. 

SHK Props. J 

Swire Pac A 

Wheel’k Mard A.. 
Wheel' KMaritl'e 
World InL Hldgs. 


17.9 , -0.1 

1.55 : 

10.7 j -Oft 
92 -1 

6ft O' 

5.80. — 0.1| 


8.30. +0.05 
12.0 i 



I Slme Darby 
Straits Trg. 


JAPAN 


Price 1+ or 
Yen . — 


D'sche Babcook.[ 
DeutseheBank... 

DU SchulL. 

Dresdner Bank... 

GHH 

Hapag Lloyd. I 

HoechsL- 

Hoesch 

Hozlmann <P) 

Horton 

Kali und Safz..— 
Karstadt 


SWITZERLAND 


f +■ or 

May 13 I Priee * — 

I Frs. : 


Dai Nippon Ptg 
Oaiwa House 
Daiwa Seiko 
Ebara ........ 

Eiaai 

Full Bank... 

Fuji Film. .. 
Fujisawa ... 
Fujitsu Fanuc.. 
Green Cross 
Hasegawa. 

He/ wa Rl East 


I +23 
291 -4 

627 | 

483 j 

700 1 +10 
412 I -3 
380 J -8 
3 386 < —4 
801 ; —8 


E 


G 

OM Fi 


5.08, -0.0 1 
3.25 


Hu 

Kit- 

Nad bank 

OKSazaara ] 

Protea Hldgs.-...) 2.60 
Rembrant. • 9.80; 


' 


I Alustils se — ... 

Brown Bovarl 


Ciba-Gelgy 1,320 

do (Part Cert*)., 996 


BELGIUM/LUXEMBOURG 


Prlea + or 
Fra. — 


Saturday May 8: Japan Dow 755S.17. TSE 559ft 1. 

Base values of all indices an 100 except Australia All Ordinary and Motels— 
600. NYSE Ail Common— 50- Standard and Poors— 10; and Toronto— 1.000; tha 
last named based on 1975. t Excluding bonds. .. $.400 industrials. $ 400 
Industrials plus 40 Utilities, 40 Financials 


ARBED 

Bang Int A Lux.. 

Bekaert B 

ClmentCBR 

Gockcrlll 

EBES 

Electrobol 

Fabrique Nat 

G.B. inno 

OBL (BruxL) 

Gevaert 

Hoboken 

Intercom 

-Krediotbank 


: 49 

2,030 
. 1,510] 
161 
. 1,656 
. 4,165 
. 2,446 
. 2,270 
. 1,340 
. 1,7901 
.1 3,310* 
.! 1,625 
4,700 
. 6 -eiOi 


Kauf h oT. . 

KHD 

Kloecknor 

Krupp 

Linde 

Luftlionsa.^ 

MAN 

Mannesmann — 
Mercedes H/g«„. 

Metaliga»»«]| 

Muoncti Ruck 

Prousaag 

Rhein West Elect 

Rosenthal 

Schering 

Slemen. 

Thyssen — 

Varta i 

Veda ! 

Verem-W st ■ 

Volkswaoen 


do (Part Certs).. 996 

Credit Suisse 1 , 820 ! 

Elektrowatt 2,320; 

Fischer (Goo) 4S5i 

Hoff-RoohePtCfail65,900 
Hoff-Roche 1/10 5,90Oj 

Interfood 8,700l 

JalmoR 2,310/ 

Landis & Gyr. [ 900) 

Nestle— _| 3,395) 


|Oor-Bueriie. | l,j90j 


Sandoz (B) 4ftOOi 

Sandoz (PtCtsJ...| 646! 
Schindler (RCts); 9B5 

Swissair ' 720 

Swiss Bank. 3ic 

Swiss Relnsce^... 6.075 

Swiss Volksbk ! 085 

Un ion Bank 2.960. 

Winterthur 2,350 

Zurich Ins.. ..■K.SOn' 


Hitachi 

Hitachi Koki ... 

Honda 

Housefood 

Hoya 

Itch <C) 

to- Ham 

Ito-Yokado 

JACOB 

JAL 

Jusco 

Kajima 

Kao Soap....»„ 
Kashiyama .... 

Klkkoman 

Kirin 

Kokuyo 

Komatsu 
Komatsu Tift _ 
KoniihroKn ,. H 


..■6.110 : 

!z,150 ] 

I 585 
i 568 , 
..l 683 I 

-I 813 
780 
~ [1,040 
.. 710 
.. 299 
.. 393 

..I B27 
.J 445 
.J2.310 
.. 530 
• 367 J 
.. 605 
.. 835 
.. . 413 . 

- 440 
„ 900 
.. 484 

_ 428 , 

- 633 


Ronnies 

Rust Plat. 
Sage Hidg.... 
3A Brews ... 
Tiger Oats. .. 

unlsee 


Financial Rand USS0.80 
< Discount of 151% 

BRAZIL 




Price | + or 
i Cruz i — 


Aesttau. j 1.6B . v 

Banco Brasil. ! 14.65^ +0.« 

Betgo Min ■ 4ftO! —O-M 


PCIHW I" ' 

Lqms AmerM ! 6.90 — O.JO 

Potrobraa PP..._.[ ,11.05! +0.0 
Souza Cruz... L.„. I lLOO) +0-« 

UnipPE ...: ...I .15.00; 

Vale RioDocft»...r 16.60 - - 




Turnover: Cr. 8.383 Om 
Volume: 873 4m ; ' 

Sourse: Bia d» Jjnoira Sc- 


NOTES W e es . on' fide page ere as quoted on uw 
lndhrMual exchanges and art last traded prides. 9 De alings 
suspended. xd£x dividend, xc Ex scrip iSffde. » Ex rights. 
zaEx all. 


J{~ 


























































37 


*vV. 


s 


i, iuucb liiUd^ iviay i*± LtstaA 

Companies and Markets LONDON STOCK EXCHANGE 



Market tone gives way to uncertainty and leading 
shares drift lower— Index reacts 5.7 to 585.2 


Account Dealing Dates 
Option 

"First DecJara- Last Account 
Dealings tioas Dealings Day 
Apr 19 Apr2S Apr 29 May 10 
Apr 30 May 13 May 14 May 24 
May l June 3 June 4 June 14 

* " New time " dealing may take 
piece from 9 am . two business days 
■arlier. 

London stock markets turned 
quietly dull yesterday. The 
slightly more hopeful outlook 
for a peaceful solution to the 
Falkland Islands crisis gave 
way to uncertainty pending fur- 
ther news of the UN negotiations 
and the outcome of yesterday's 
Commons debate! 

Selling was usually for small 
amounts of stock, but potential 
buyers were content to hold off 
and leading industrials drifted 
off for most of the trading 
session. Reports that a British 
task force frigate had been 
damaged tended to dampen 
sentiment but, with the two- 
week trading Account ending 
today, technical factors also 
played a part in the reaction. 

The day’s trend was well 
illustrated by the FT 30-share 
index, which reduced a loss of 
2.5 at the 10 am calculation to 
one of only a point an hour later 
before casing progressively to 
record a fall of 6.4 at 3 pm; a 
slight hardening of the lone in 
tiie late dealings left the index 
with a fall of 5.7 on balance at 
585.2. 

Apart from occasional features 
in response to trading news and 
bid speculation, interest in 
secondary issues was at a low 
ebb. Among the sectors. Oils 
showed above average falls. 


sentiment being unsettled by dis- 
appointing first-quarter figures 
and accompanying bearish com- 
ments on the outlook from 
Ultramar. 

British Funds also turned 
reactionary, underlying senti- 
ment not being helped by tighter 
conditions in money markets and 
yesterday's downturn in terling 
against the dollar. Trading 
conditions were thin, and losses 
In short and long-dated stocks 
were usually limited to 1 after 
a small turnover. Index-linked 
stocks, in contrast, were helped 
fay favourable comment and 
edged up to close i higher. The 
Government Securities index 
recorded a loss of 0.26 aft 69.21. 

Seecombe Marshall up 

Seceombe Marshall and 
Campion highlighted firm Dis- 
count Houses, rising 25 to 235p 
in response to the good pre- 
liminary results and proposed 
one-for-seven scrip issue. Satis- 
factory annual figures prompted 
an improvement of 2 to 9Sp in 
King and Shaxson, while Gillett 
Bros, rose 7 to Z47p in sympathy*. 
Elsewhere. Bank of Ireland 
recouped an early fall of 5 and 
closed a couple of pence up on 
balance at 2S7p following the 78 
per cent jump in annual earn- 
ings. The major clearing banks 
lost the previous day's gains on 
end-Account considerations. 
News of the bank's decision to 
open 400 branches on Saturdays 
from September failed to 
entbuse Barclays, which lost 8 to 
460p. 

Apart from Eagle Star, which 
edged forward 2 to 367p on 
sporadic speculative support. 



FINANCIAL TIMES STOCK INDICES 


\ May 
■ 13 


May 

12 


May 

11 


May I May 
10 I 7 
1 


May 

6 


I A 
i year 
a BO 


Government Sec#...., 6fl.El| 69.4l| 

Fixed Interest. ( eo.so! 69.7si 

Industrial Ord- J. 585 .2: 990.9! 585. lJ 690: 


68.94! 69. 01; 68.38; 68.28; 66.53 
69.37! 69.42| 08.93! 68.98| 69.05 
583.3| 576.9; 558.1 
231.4 
5.371 


231J2 

5.42 

11.52 

10.851 


368.0 

5.90 

11.57 

10.85 


Gold Mines | 23Laj 229.8) 226.0* 228.J 

Old. Dlv. Yield 5.32j 5.28. 1 5.3 jj 5.30l 

Earnings, Yld.S(full)! 1 ljoo! 11.04 11.15; 11. Off 11.34j 
P/E Ratio (net) (*).„,. 11.11! 11.16! 11.05j 11.12 11.05! 

Total bargains 1 15,467! 18,2 18| 18,354! 18,535 16,517: 16 , 210 ' 20,527 

Equity turnover fitn.j — ! 175.45, 147.98- 148.90 l55.5ol 134.69; 125.463 

Equity bargains , - ! 14,804l 14,95l! 14,19li 13,205! 12.673- 15,624 

10 am 683.4. 11 am 6E3.9. Noon 588.6. 1 pm 585.1. 

2 pm 534.5. 3 pm 584.5. 

Basra ICO Govl Secs. 16/10/28. Fixed Int. 1328. Industrial Cfrd. 
1/7/35. Gold Mines 12/8/55. 5E Activity 1974. 

Latest Index 01-246 8028. . 

-N4 = 10.29. 


HIGHS AND LOWS 


S.E. ACTIVITY 


1982 


Since Compilat'nr 


High j -Low I Nigh. y Low 


Govt. Secs..., gB .53 } 61.89 


123/51 | 

Fixed Int .... 1 69.90 j 

( I3,6> - 

Ind. Ord : 590.9 

; (12l5) J 

Gold Mines . 302.0 j 

I 1W1 


£51 If 
62.79 
(Till 

518.1 

fc'U 

209.2 
i9/3) 


i 150 A ( 50.53 
(Mil 1/47) {3/1/751 
! 597.3 1 49.4 
:lM/4fll) (28/8/40) 
i 558.9 1 43/5- 


: 

r • i 

> ! 
j - - 1 

' May 1 May 
l 12 j 11 

-Dally ] 

| 

Gilt Edged 1 
l Bargnins.. 
.Equities ..... 
Bargains.. 

i 

. 183.2; 170.6 

! 95.9| 95.9 

Value 

1 354.61 299.1 

5-day Avrge 
Gilt-Edged 
Bargains.. 

| 174.e| 169.5 

Equities 

' 90. ft! 87.7 

Bargains.. 

Value 

508.2' 289.8 


Composite Insurances drifted 
lower. Royals lost 4 to 342p on 
further consideration of the first- 
quarter figures. 

Breweries were inclined easier 
in quiet trading but Vatix moved 
against the trend, rising 10 to a 
2982 peak of 14Sp in response 
to better-th an -expected interim 
figures. Elsewhere, dealings in 
Louis Gordon were temporarily 
suspended, at 20p; the company 
announced yesterday that dis- 
cussions are taking place with 
Pedro Domecq SA with a view to 
a bid for the outs tandin g 
minority. 

Apart from Costain, which 
shed 6 for a two-day fall of 16 
to 254p on further consideration 
of the preliminary resuits, lead- 
ing Buildings held up well. Else- 
where. Breedon and Cloud Hill 
Line Works attracted further 
demand and, in a thin market, 
added 5 more to 187p. Francis 
Parker touched a 1982 peak of 
23$p before closing a net 3 up 
at 23p as speculative interest 
revived. 

Lack of support and occasional 
selling left ICI 4 cheaper at 
322p. Amersbam touched a peak 
of 2I6p before closing 2 dearer 
on balance at 214p. 

Bambers sold 

Nervous selling Induced by 
rumours of a boardroom rift 
took its toll on Bambers Stores, 
which fell 5 to a 1982 low of 27p. 
A rising market of late on 
demand in a restricted market, 
Lanca lost 4 to 48p on profit- 
taking, while Currys came on 
offer and shed 6 to 186p. J. 
Hepworth, on the other hand, 
touched 108p before closing a 
net 4 up at 104p on revived bid 
hopes, while speculative buying 
prompted rises of 2 and 3 
respectively in Goodman Bros., 
lfip. and S. and U- 17p. Among 
the narrowly mixea leaders, 
Woolworths softened li more to 
45$p after comment on the poor 
first-quarter figures. 

Light end-Account profit- 
taking left Plessey 6 down at 
422p and GEC 3 lower at 890p. 
Philips* Lamp fell 10 to 530p 
following the uninspiring 
quarterly report and BICC 
ended a similar amount cheaper 
at 330p. Thorn EMI, on the other 
hand, improved a few pence to 
443p. Secondary Electricals 


were featured by a rise of S to 
260p in CASE, while Muirhead 
gained 5 to 135p on revived 
hopes of a bid from Tyco Labor- 
atories of the U.S. 

Buying on defence spending 
hoped helped Yarrow to ri^e 15 
to 360p and Chemring 6 to 35Sp. 
Elsewhere in Engineerings, 
Pegler^Hattersley rose 4 to 21Sp 
as did Harlonair International, 
to 247p. Mining Supplies came 
on offer and shed 6 to 120p, 
while G. M. Firth relinquished 
5 to l80p. The leaders drifted 
lower with Hawker leading the 
retreat at 332p, down 6. 

Food Retailers remanied sub- 
dued on price war worries. 
Teseo cheapened a penny to 53p 
and Kwift Save 2 more to 224p, 
wbile J. Salnsbury softened 5 to 
605 p and -William Low lost a 
couple of pence to ISOp. 

Among Hotels and Caterers, 
selling in an unwilling market 
left Ladbroke 6 down at 154p. 
Grand Metropolitan softened 2 to 
2l8p awaiting today’s interim 
results. Elsewhere, De Vere 
touched a 1982 peak of 205p 
before closing 2 dearer on 
balance at 202p. 

Dalgety doll 

Dalgety took a distinct turn 
for the worse in miscellaneous 
industrials, falling to 292p 
before dosing a net 15 down at 
295p on a broker's circular. BTR 
also became vulnerable to late 
selling and finished 18 down at 
340p. End-Account profit-taking 
clipped 7 from British Aero- 
space. 209p. while Foseco Minsep 
lost a similar amount to 197-p. 
Cam rex. at 52p r lost 5 of the 
previous day's speculative rise 
of 6 after Hawley Group 
announced that it has no inten- 
tion of making a frill-scale bid 
for tbe company after having 
increased its stake to more than 
20 per cent. Lrfwer annual earn- 
ings prompted a reaction of 2 
to 47p in Holt Lloyd Inter- 
nationa]. while Hawkins and 
Tipson eased the turn to 22p on 
the increased interim deficit. 
Among the leaders, Glaxo, which 
have risen sharply this week on 
hopes that its Zantac anti-ulcer 
drus might soon receive U.S. 
approval, dipped 7 to 667p. after 
886 p, on end-Account profit- 
taking. Turner and Newall 
closed 4 down at 64p. 


Down 18} on Monday on the 
Court decision not to allow the 
company to resume gaming at 
the Playboy Club in London. 
Trident TV jumped 9 to 71p on 
the granting of a licence for the 
Claremont Club. Among other 
Leisure issues, Pleasurama 
gained 15 to 235p, but Nunslo. 
also a thin market, shed 'that 
much, to lS5p. 

Recently firm on hopes of 
increased Government spending, 
aerospace issues met light profit- 
taking; Dowty lost 4 to 12Sp. 
Among Motor Components, 
Kwik-FIt (Tyres and Exhausts) 
put on 4 to 50p in response to 
better-than-expected results and 
the Board's optimistic statement 
on current trading. 

Jefferson SmurGu , at 59p. lost 
all of the previous day's gain of 
4 on second thoughts about the 
preliminary results. British 
Printing shed li to 35lp, while 
More O’Ferrall gave up 9 to 
125p. Dealings in Woodrow 
Wyatt were suspended at 7*> at 
the company's request pending 
clarification of the company's 
position. 

Properties turned quietly dull. 
Elsewhere, Apex declined *5 to a 
19S2 low of I13p. while Warner 
Estate softened a couple of pence 
to 303p, the latter following the 
interim results. Against the 
trend. C. H. Beazer found sup- 
port and improved 3 to 158p, 
while Five Oaks Investments 
added 2 to 23} p on an invest- 
ment recommendation. 

Ultramar react 

Sentiment In Oils was not 
helped by tbe disappointing 
first-quarter results and bearish 
statement from Ultramar which 
reacted 22 to 43Sp. Tbe 
leaders turned cautious after 
the announcement, British 
Petroleum and Shell both clos- 
ing 4 cheaper at 314p and 416p 
respectively. Barmab lost 5 to 
140p and Tricentrol 8 to 212p, 
while Lasmo slipped to 335p 
before settling 5 cheaper on 
balance at 340p. The Humbly 
Grove participants met profit- 
taking; Carless Capel relin- 
quished 4 to 170p with the new 
nil-paid shares 7 down at 3op 
premium, while Candeeea shed 
4 to 208p and Marines 5 to lOOp. 
Elsewhere. Ranger Oil, a strong 
market recently on Transatlantic 
influences, gave up 8 to 352p. 

Among money brokers. Exco 
International revived with a rise 
of 10 to 195p. but R. P. Martin 
encountered sporadic offerings 
and gave up 7 to 2S0 d. 

Profit-taking in the wake Df 
the excellent annual results left 
Coats Patons 3 down at 67p. 
Courtaulds, preliminary results 
due on May 27, eased a penny 
to 94-p. Elsewhere in the Textile 
sector, demand in a tbin market 
lifted Ybrklyde 13 to 293p. Lister 
improved 2 to 30p. 

Tobaccos gave modest ground 
in thin trading. Bats losing 7 To 
455p and Imperial a penny to 
97p. After .Wednesday’s specula- 
tive gain oF 4. Rothmans met 
profit-taking and /died 3 to 98p. 

South African industrials were 
f^itured bv renewed weakness in 
Greaterman Stores A, which 
plummeted 40 more to 230o as 
The market awaited further 
developments in the wake of the 


Supreme Court's decision to veto 
KJrsch Industries’ partial bid; 
the shares have been as high as 
630p this year. Meanwhile, 
Barlow Rand fell 19 to 343p 
following the interim results. 

Western Mining weak 

Recently firm Australians sus- 
tained sizable losses in active 
trading following a sharp set- 
back in overnight Sydney and 
Melbourne markets. 

The weakness reflected sub- 
stantial profit-taking after the 
heavy Hong Kong and Singapore 
buy ing in recent days coupled 
with dismay over news that Esso 
Exploration and Production 
Australia — a subsidiary of Exxon 
— is pulling out of the Yeelin-ie 
uranium project in Western 
Australia. 

Western Mining, which has a 
75 per cent interest in Yeelirrie. 
were heavily sold at the outset 
and dropped to 215p prior to 
dosing a net 19 down at 21Sp. 

Other leading issues were 
marked lower in sympathy. MIM 
Holdings gave up 13 to lS7p. CSR 
12 to 193p. Peko-Wallsend 10 to 
270p and CRA 4 to ISSp. 

In Coals. Oakhridge receded 
5 to SOp while Uraniums showed 
Pancontinental 4 cheaper at 
lOOp. 

Elsewhere, Seltrust A dipped 
2 more to 48p reflecting dis- 
appointment with the terms of 
the capital restructuring. 

South African Golds made 
further modest progress as the 
bullion price held above the 
$330 level before closing 12} 
cents up at S332.125 an ounce. 

Renewed bear covering 
enabled tbe heavyweights to 
improve by up to 1. as in Drie- 
footein, £10i, and Libanon, £123. 
while medium- and lower-priced 
issues showed Blyvoor 10 up at 
458p and Harmony 8 firmer at 
496p. The .Gold Mines index 
moved up 2 points more to 231.8. 

South African Financials 
9howed little change either way 
as did London-registered stocks. 
Tn Platinums. Impala advanced 
8 to 228p, while, among Coppers, 
Messina held at 230p following 
the half-year results. 

Imperial again claimed most 
of the attention in the Traded 
Option market yesterday. Of the 
2.892 deals completed. 2.026 were 
done in Imps, comprising 1,941 
calls and 85 puts. 




it 

RIGHTS” 

OFFERS 


a 


Latest 

Re nunc, 
date 

• B 

1982 ] 

Stock 

[IS a +° r 

«*! 

High i Low 1 

15* : 


OPTIONS 

First Last Last For 

Deal- Deal- Declare- Settie- 

ings ings tion meat 

May 10 May 21 Aug 12 Aug 23 
May 24 June 11 Sept 2 Sept 13 
June 14 June 25 Sept 16 Sept 27 
For rate indications see end of 
Share Information Service 
Money was given for the call 
of Premier Consolidated, Inter- 
City. Trident TV A, Rothmans, 
Land Securities, MEPC, British 
Land, William Lou-, Turriff. 
Imperial Group, Tozer Kemsley. 
Hawley Leisure, Mariner and 
JCL.. Puts were arranged in 
Wm. Low. Turriff, Imperial 
Group and Chloride, while 
double options were transacted 
in Ultramar, Standard Char- 
tered and Imperial Group. 


RECENT ISSUES 


EQUITIES 


price 

P 


13.3 Uj 


140 

IB 

1105 

<260 

60 

aioa 

(130 

$260 
1 1 
£120 
1 1 
136 
Vi 


1982 


Stock 


High 


F.PJ14/5 
‘F.P ,| 16/4 
|F.P.i81/6 
IF.P.I 4/6 
,F.P.|2B/5 
'F.P.I — 
JF.P.'28(5 

iF.pJl4/3 
iF.P.I - 
IF.P.I 7/6 
F.P. - 
lF.P.;13/5 

F.P.I - 


(170 
. 30 
IlOB 
1375 
62 
1 135 
148 
1 17 
1250 
127S 
■134 
I BO 
1 141 
I 90 


Low | 


a 

.o 


! 1 d Ci * *2' , o 

&i+ or > oS'eS'S®?* 
! - .O cpS; 03 " 


|aIM Group lOp '170 

iCambrian A Gen. Up 30 
•{•Cass Group lOp... 107 
•{■Cent. Microwave... (370 
£DeBrett(Andre) lOp. 60 

Oew /George). 127 

[£Druck Hldgs. '148 

lAGr'p Inv Option Crtsj 16 
*lo Technology 1-47 

•f-Jebsens Drill ing....i265 

I £• Leisure In da — ;122 

Osprey Assets ; 30 

'standard Secs ■ 

Zambia Cons Cpr 70 


;+ 1 ,bdB.7b 1.9. 4.8 15.5 
. ::::::!ud 2 .s! s.a! 3 . 3 15.4 

1 ,65.25 3.91 2.0-11.7 

1 bS.5 2.1 1 6.011.4 

, 05.7 . 4.0' 6.4, 5.6 

I Ib2.3 ■ 2.5' 2 JZ 25.7 

i-i , - I - I - : - 


! bl7.5. 2.3' 9.4 6.5 

'65.0 2.8' 6.9' 8.3 

F1.4 — . 6.7: - 

j— 2 b2.B 1 1.2' 3.0 40.2 


FIXED INTEREST STOCKS 


Issue 

price 

£ 


11 


* e 

■JS -a 

J K 


$99.S92'£&5 

4.100 l£10 
mm . I F.P. 
*100 | F.P. 
«100 F.P. 
5100 F.P. 
§100 F.P. 

JlOO F.P. 

11107 If.P. 


1988 

-I- 


Stock 


High; Low 


I '+ or 

! S3 , ” 

' O OL . 


14/7 

1/7 


[29/4 


25 1 21 >8 Cred. Fancier de France Lon.2M7; 24i« ..... 

East Anglia Water 9% Red. Prf. 1387 „12 4 .. .. 

First Nat. IZipc Conv. Uns. Ln. **®7_la6 ..... 

k. BJ* _ Ini. fine >lat f*lim Prf til H7 ■ — B 


12 >4i 
1136 

I 47 

4B 

1 1008s 
'lOOis 
HOOJa 
11131s 


Ills 
156 i 

39 

46 
99 Ss, 
99 Bg 

lOOrfe. 

1091*, 


Grt. N'rth'n Inv. 4pc Net Cum. Prf. £1| . 

Do. 4.7pcNetCum. Prf.fil- 46 +1 

Nationwide Bdg. Soc. 14^1 U4/3/33i. 100 >«. 

DO. 14 US <4/4/831 ,100U; , 

Do. 14US /25/4/B3I lDOS^' ...„ * 

Queens Moat lOifc Cnv. - B9-9l 11 »U: • 


10 I 

170 ; 

125 ; 

ASl ! 
135 
30 

! § ! 
500 ! 
500 
120 
145 
18 < 
6 . 
27 i 
98 
170 
10 
133 


F.PJ27/4 
F.PJ13/5 
F.P.;21/4 
Nil 124/5 
Nil I - 
F.P, 29/3 
F.P. 30/4 
F.P.I 10/5 
Nil |20/5 
Nil — 
F.P.; 7/6 
F.P. 12/5 
Nil '21/5 
F.P. 19/4 
F.P. 1 29/4 
F.P.116/4 
F.P. 14/5 
F.P. 24/3 
F.P./10/5 


28/5 13l»i 13 Antbacher iH.»5p. .. 

24/8 . 190 180 BankLeumi (UK<£1. 
28/5 I 158 135 'Beazer >C. H.i 10p. .. 

7/6 ISijpml 3'fpmlBond Corp 

j 44pm; 35pmiCarle9B Capel 10p.„. 


10/5 

28/5 

21/6 

18/6 

4/6 

7/6 

4/6 

21/5 

27/5 

4/6 

11/6 

23/4 

10/6 


60 

86 

6 


6b First Castle lOp. 

42 Fisher lA.* 

5 iGrovebell <5pi. .. 


SOpmi BOom Hammerson Prop. 

75pm' 35pm> Do. A. 

169 ( 144 .Ltlley (F.J.C.I 

187 , 176 :Low (Wm.) 80p 

14pm. 4pm,North Kaiguri 

8 ' eu'Platignum 5p 

29 u; 86UIQueens Moat. 

107 I 99 iRIley Leisure 

284 ' 272 Steel Bros 

12 u I lOU'Stuna 10p 

160 145 .Vickers iCl/ 


185 - 

158 +3 

9Upm 

35pm.— 7 
57 1 

42 : 

Slz.-rlg 

80pm 

33pm —3 
169 .+ } 

182 . 

4pm —2 

7U 

29 • 

106 

227 . 

12 

155 -5 


Renunciation date usually last day for dealing free or stamp duty. 6 Figures 
based on prospectus estimate, d Dividend rate paid or payable on part of 
capital: cover based on dividend on full capital. 0 Assumed dividend and yield, 
r Indicated dividend: cover relates to previous dividend, P/E ratio based on latest 
annual earnings, u Forecast dividend: cover based on previous year's earnings. 
F Dividend and yield baaed on prospectus or other official estimates for 1922. 
q Gross. T Figures assumed. 9 Figures or report awaited, i Cover allows for 
conversion of shares not now ranking lor dividend or ranking only lor restricted 
dividends. S Piecing price, p Pence unless otherwise indicated. 4 Issued by 
tender. H Offered to holders of ordinary shares as a "fights.” “Issued by way of 
capitalisation. 5§ RelntroducBd. 11 Issued In connection with reorganisation. 
merger or take-over. |))| Introduction. □ Issued to former preference holders. 
■ Allotment letters (or fully-paid). • Provisional or pertly-paid allotment letters. 
4c With warrants. ft Dealings under special Rule. 'if Unilateral Securuins 
Market, ii London Listing. ft Effective issue price after scrip, i Formerly 
dealt In under Rule 1B3(2)(a). ft ft Unit comprising five ordinary and three 
Cap. shares. A Issued free as an entitlement to ordinary holders. 


ACTIVE STOCKS 

Above average activity was noted in the following stocks yesterday 


Stock 

Closing 

price 

pence 

Day's 

change 

Stock 

Closing 

price 

pence 

Dev's 

change 

Bambers Stores ... 

27 

- 5 

Ladbroke 

... 114 

- 6 

Barclays Bank 

.... 460 

- 8 

Plessey 

... 422 

- 6 

BP 

... 314 

- e 

Shell Transport 

416 

- 4 

Corns Paions 

67 

- 3 

Trident TV A 

71 

4 9 

Dalgety 

.... 295 

-15 

Ultramar 

433 


Hepworth (J.) 

.... 104 

+ A 

Western Mining ... 

.... 21S 

-IS 


WEDNESDAY’S ACTIVE STOCKS 

Based on bargains recorded in S-E. Official List 


Wednesday's 
No of closing 


Wednesday’s 
No. ol closing 



price 

price 

Dey's 


price 

pnea 

Day's 

Stock 

:hcnges pence 

Change 

Slock 

changes 

pence 

change 

Coats pBtons 

13 

70 

-1- 4 

Heaih (C 

E.) 11 

345 

-12 

GEC 

13 

893 

-»■ 5 

Midland Bk 


332 

4- 7 

EAT Inds .. . 

12 

462 

+ 4 

NatVi/est Bk 


422 

-■ 6 

Cable ft Wire 

12 

281 

+ 6 

Ratal Elec 


423 

+ 5 

Lloyds Bank 

12 

410 

•MO 

Roval In* . 


346 

J- 3 

P. ft 0. Detd 

12 

151 

-f i 

Thorn EMI . 


440 

-r a 

Plessey 

12 

428 

+ 5 

Barclays Bk 

... 10 

468 

8 


FT-ACTUARIES SHARE INDICES 

These Indices are &e joint compfatton ef tbe Financial Times, ifae Institute of 

ami the Faculty of Mute 


EQUITY S ROUPS 
& SUB-SECTIONS 


Ftgu-es la parenthe*** show 
stocks per section 


Tiiur May 13 1982 


Ns. 



BL 

Cros 

EsL 


Earates 

Oh. 

WE 

Day’s 

Yletf% 

Yield % 

RNta 

C tan* 
« 

OtoL) 

(ACT 
at 30%) 

(Nd) 


VW 

$ 


Me. 


Tee 

9 


Max 

No. 




Mb 


M 

r 


Max 


Yaw 

*9» 

fcppraxj 


Met 

No. 





NEW HIGHS AND 
LOWS FOR 1982 

The following quotation* In the Share 
In/omutlqn Service yesterday attained new 
High* and Lows for 1SB2. 

NEW HIGHS (65) 

BRITISH FUNDS I3i 
Each SLbc 1982 Trees Spc 19S7 
Tree* 3ac 19B6 

BANKS III 

King and Shaxson ■ Minster Assets 
Mercury Securities 

BEERS t2| 

Amal Olst Products Vaux 

BUILDINGS 191 

Bryant Hldgs MIMoncret* 

Countryside Tarmac 

Francis Parker Tilbury Croup 

May and Hassell Whauings 

Miller 1 Stan lev ■ 

CHEMICALS <2> 

Allied CallaldS Amerthim Intel 

STORES (5) 

Brown iN.» S and U Stores 

Church Smith iW. H.I A 

MFI Furniture 

ELECTRICALS I5> 

CASE Whitworth Elec 

Fetdback: Wholesale Fittings 

Humberside 

ENGINEERING (71 

Besuford Pea I er- Hatter si ev 

Chemrlra Senior Eng 

Ductile Steeft Yarrow 

Marta nalr 

HOTELS (1> 

De Vere Hotels 

INDUSTRIALS nB1 


Metal Closures 
Norton 
PH inds 
P»rlter-Kno1l A 
Reckht and Caiman 
Sparrow iG. W.i 
Standard Fireworks 
Watsham’s 


Beecbam 
Boot (Henry* 

Dentsply SpcCn* 

Excel 
Fiexello 

Hepworth Ceramic 
Jardine Matheson 
Macfarlane . _ - 

LEISURE ill 
Pfeasuram. MOTORS if, 

Brit car Auction*™ .1, 

Good Relations „ 

PROPERTY <11 

Ba«er rc 

V ° rthr,,e TRUSTS (S* 

Gen and Comm TR Australia 

Leda Inv Cap TR North America 

Moorgate Inv Young Cos Inv 

OVERSEAS TRADERS <11 
Steel Brothers 

NEW LOWS (34) 

CANADIANS <11 
Bank of Nov. Seen*, 

Bank Leuml 

Bambers electrical (1) 

P/ezo El Products 

ENGINEERING <3> 

Bristol Channel Tdftas 

MOSS Eng | siDUSTR I ALS (41 
De La Rue Nu-Switt 

Espcnnaa Inti SWBa Group 

INSURANCE f2l 

Edinburgh Gen Ini Trade Indemnity 

MOTORS <2> 

pape^ m 

More 0-F.r«» Rore 

A oex Prop* Regional Prop 

Centro*inclal _ Utd Real 

Country New Town Warnford 

Mai bo rough SH ,„ |NO 

LBd " OV *^ e 1SK , CANS <1. 

Great-man. A fl| 

Martin iR- P.i Mehtas Fund 

OIL AND GAS (Si. 

Col/lns iK.I KCA Drilling 

Credo TRADERS <11 

Oostnr H«xi*e 


B erta m 
Kitchener 


RUBBERS m 


MINES r%i 

PacHlc Cooper 


RISES AND FALLS 
YESTERDAY 

Rises Fells Same 

British Funds 7 69 17 

Corpus. Dom ft 
Foreign Bonds ... 1 2 72 

industrials M 2 B* 

Financial ft Props. 89 97 321 

Oils 9 ® J! 

Plantations 4 2 17 

Others 38 52 61 

ratals - 347 804 1,516 



WORLD VALUE OF THE DOLLAR 

Bank of America NT & SA, Economies Department, London 


The table below gives the rates ol exchange for the U.S. dollar against various quoted are indicative. They are not based on. and are not intended to be 
currencies as ol Wednesday. May 12. 1982 The exchange rates listed used as a basis for. particular transactions, 

ere middle rates between buying and selling rates as quoted between 

bants, unlass otherwise indicated. All cuuenties ere quoted in foreign toreign currencies, and neither Bank c 

currency units per one U.S. dollar except in certain specified areas. All rates Times assume responsibility for errors. 


bssi3 for. particular transactions. 

Bank of America NT and SA does not undertake to trade in all listed 
foreign currencies, and neither Bank ol America NT and SA nor the Financ.tl 




VALUE OF 

COUNTRY 

CURRENCY 

DOLLAR 

Afghanistan 

... Afghani tOj 

68.25 

Algeria 

■i. LbK 
... Dinar 

4.54 


jFr. Franc 

5.918 






30.214 

Antigua 

... E. Caribbean 8 

2.7025 

14025. 

Argentina. 


Austria 

... Schilling 

15.996 



69.47 

Bahamas 

.. Dollar 

1.00 

Bahrain 

... Dinar 

0377 



101.23 

Bangladesh...., . 

...Taka 

20.715 



2.01 


i Franc (C/ 

42.87 

Belize — 

Benin 

Bermuda 

Bhutan. 

... Dollar 
.. C.F.A. Franc 
... Dollar 
... Ind. Rupee 

2.00 

295.90 

1.00 

9.2166 

Bolivia. 

-. Peso 

44.00 

0.0623 

167.965 

Brazil 


Brunei 

... Dollar 

2.075 

Burma.... 

.. Kyat 

6.4516 

Burundi- 

.. Franc 

90.00 

Cameroun Rp. ... 

... C.F.A. Franc 

295.90 

Canada 

.. Dollar 

1.2311 

Canary Is — 

.. Sp. Peseta 

101.23 

Cape Verde Is.... 

.. Escudo 

54.70 


.. Dollar 

0.835 

Cen. Af. Rep 

.. C.F.A. Frano 

295.BO 

Chad 

.. C.F.A. Franc 

295,90 

39.00 

1.7941 

62-37 

China 

Colombia. 

.. Renminbi Yuan 
.. Peso (Ol 

Comoros — 

.. C.F .A. Franc 

295.90 

CongoP'ple.Rap.of C.F.A. Franc 

295.90 

Costa Rica 

j Colon CO) 
i Colon 

8.60 

38.09 

Cuba...._ 

.. Peso 

0.8244 

Cyprus 

.. Pound* 

ST. 1868 

Czechoslovakia.. 

.. Koruna (O) 

5.85 

Denmark. 

..Krone 

7.68*7 

Djibouti Rp. of... 

.. Franc 

177.72 

Dominica 

.. £. Caribbean < 

2.7025 


< Sucre (Ol 

25.00 


i Sucre (Fi 

44.505 

Egypt 

• Pound* (Ol 

1.1976 

i Pound* tlj 

1.2151 

El Salvador- 

.. Colon 

2.50 






2.0351 

7.6887 

Faeroe Is 

.. Dan. Krone 

Falkland Is- 

.. Pound* 

1.8445 




Finland — 

.. Markka 

4.442 

France 

.. Franc 

5.918 

Fr. CTy In Af 

.. C.F.A. Franc 

295.90 

Fr. Guiana 

.. Franc 

5.918 

Fr. Pae. Is.— 

- C.P-P- FWtf ic 

103.009 

295.90 


mm C»F Fnuic 

Gem- IEI . 

.. Ostmark (0) 

3.2696 

Germany (W, Mark 

2.2696 



2.75 

Gibraltar........... 

.. Pound* 

1.8445 

Greenland - 

Dan. Krone 

7.6887 

Grenada 

.. E. Caribbean $ 

2.7025 


COUNTRY CURRENCY 

Guadaloups Franc 

Guam U.S. % 

Guatemala Quetzal 

Guinea Bissau Peso 

Guinea Rep Syli 

Guyana..— Dollar 

Haiti Gourde 

Honduras Rep-:..~. tfempTra 

Hong Kong Dollar 

Hungary. Forint 

Iceland Krona 

India Rupee 

Indonesia Rupiah 

Iran — Rial lO) 

Iraq Dinar 

Irish Rep Punt* 

Israel Shekel 

Italy - Lira 

Ivory Coast. C.F A. Franc 

Jamaica Dollar 

Japan - Yen 

Jordan Dinar 

Kampuchea. Mel 

Kenya. Shilling - 

Kiribati Auet. Dollar 

Koraa (Nth) Won 

Korea (Stti) Won 

Kuwait - — Dinar 

Lao P'pls D. Rep ... Kip 

Lebanon Pound 

Lesotho Loti 

Liberia Dollar 

Libya..., Dinar 

Liechtensfn Sw. Franc 

Luxembourg Lux Franc 

Macao. - — Pataca 

Madagascar D. R. . Frano 

Madeira Port. Escudo 

Malawi Kwaoha (5) 

Malaysia. Ringgit 

Maidive !• Rufiyaa (O) 

M a/dlve is. - , Rufiyaa (M) 

Mall Rp — Frano 

Malta. Pound* 

Martinique Franc 

Mauritania Ouguiya 

Mauritius - — Rupee 

Mexico Peso 

Miquelon Fr. Frano 

Monaco Fr. Franc 

Mongolia...: — Tugrik (O; 

Montserrat ........ EL Caribbean 5 

Morocco - Dirham 

Mozambique Metioa 

Namibia. S. A. Rand 

Nauru Is. Aust. Dollar 

Nepal Rupee 

Netherlands Guilder 

Neth. A rtf I a* Guilder 

New Zealand Dollar 

Nicaragua.... Cordoba 

Niger Rp. — C.F.A. Franc 

Nigeria - Naira (O] 

Norway Krone 

Oman,8ultanate of Rial 

Pakistan .... Rupee - • 

Panama Balboa 

Papua N.G Kina 

Paraguay Guarani 

Peru Sol 

Philippines — Peso 


VALUE OF 
DOLLAR 


2.5245 

1.80 

1.2879 

10.05 

295.90 

0.656 

6.881 

D.34S6 

- 11.5078 
1.00 
0.7143 
126,00 
612.73 
8.403 


COUNTRY 


CURRENCY 


VALUE OF 
DOLLAR 


5.9 IB 




1.00 

1.00 
38.4127 
i 21.5507 

2.9846 

Poland 

. Zloty CO) 

80.00 

Port Timor 

Puerto Rico 

Qatar 

Escudo 
. Escudo 

U.S. S 

59.47 

n.a. 

1.00 

5.00, _ _ 
2.00 
5.761 

Reunion He de la.. 
Romania 

Fr. Franc 

Leu <0/ 

5.fl3 

4.47 

10.46X3 

9.2166 

St. Christopher.... 

E. Caribbean S 

2.7025 

652.50 


E. Caribbean S 


82.93 

St. Pierre. 


D.2953 

1.525 

20.82 

St. Vincent 

Samoa (Western)-. 

EL Caribbean S 
Tala 

U.S. 8 

2.7025 

0.8772 

1259.95 

295.90 

1.788 

231.65 

San Marino 

Sao Tome ft 

Principe DR. 

Saudi Arabia 

It. Lira 

Dobra 

RiyaJ 

C.F.A. Frane 

Rupee 

Leone 

Dollar 

1259.95 

39.504 

0.341 

3.4305 

ns. 

10.4248 

0.9358 

0.94 

718.30 

0.285Z 

Seychelles 

Sierra Leone 

Singapore 

7.2632 

1.1934 

2.075 

0.9074 

6.55 

12.46 

Somali Rep.... 

South Africa 

Shilling >3i 

Shilling (4j 





4.9565 

13)523 

1.00 

Span. Ports in N. 

[- Sp. Peseta 

101.23 

0.2961 

1.9066 

42.87 

Sri Lanka 

Rupee 

20.63 

Surinam 

Guilder 

1.1111 

1.7B5 

5.9886 

295.90 

Sweden 

Lilangeni 

Krone 

1.0525 

5.7097 

1.9065 

3.925 

38.13 




2*2765 

Taiwan - 

Dollar (0) 

7i55 

Tanzania 

Shilling 

9.0268 

2.5554 

5.918 

51.29 

Togo Rep C.F.A. Franc 

Tonga la Pa'anga 

Trinidad ft Tobago Dollar 

295.90 

0.9358 

2.409 

46.65 

5.918 

5.918 

3.3555 

2.7025 

Turkey 

Turks ft Caicos 

Lira 

U.S. S 

14?;30 

1.00 

Uganda- 

Shilling 

78.00 

5.7448 


Dirham 

Pound Sterling* 
C.F.A. Franc 

Paso 

3.6731 

1.0523 

0,9368 

13.20 

Upper Volta 

Uruguay — 

295.90 

12.20 


Rouble 

0.7557 


Vanuatu 

Vatican 

Venezuela. 

Vietnam. 
virgin is. Br..... 
Virgin Is. UA. 

Yemen 

Yemen PDR 

Yugoslavia 

Zaire Rp. 

Zambia. 

Zimbabwe,... 


.Vatu 

Aust. Dollar 
. Lira 
. Bolivar 
. Dong (0) . 

. U.S. 5 
U.S. 8 

.Rial 
. Dinar 
.Dinar 

.Zaire 
. Kwacha 
. Dollar 


95.6444 
0.936B 
1259.95 
4.298? 
2.18 - 
. 1.00 
1.00 

4.5605 
0.3453 
45.2057 
5.543 ' 
0.8942 
0.7553 


n.a. Not available, fm) Market rare. * U.S. dollars per National Currency unit, fo) Official rate, (c) Commercial rate, (f) Financial rate. 

(1) Egypt— Floating rats fixed daily by Central Bank or Egypt for Importers. Exporters, Tourist*. (2) Argentina— devalued by approx. 17 per cent 5/5/62. 
(3) Somali: Parallel exchange rates introduced July 1 — lor essential imports (4) Somali: Exports and Non-Essential Imports and Transfers 

(5) Malawi— devalued 26/4/82. 



> 


























•ns, CURRENCIES and MONEY 


Dollar firm 


THE POUND SPOT AND FORWARD 


Dollar gained ground In late 
trading as higher U.S. interest 
rates boosted demand for the 
currency in New York and 
Chicago' A firmer trend in Euro- 
dollar rates helped to support 
the dollar throughout the day. 
although European central 
banks may have intervened in 
the morning to push down the 
U.S. unit. 

Sterling was slightly weaker 
in general, and in common with 
other European currencies re- 
treated against the dollar, hut 
showed no reaction tn the 
present Falklands situation. 

DOLLAR — Trade-weighted 
Index (Bank oF England) 112.4 
against 111*8 on Wednesday, and 
107.0 six months ago. Tfarce- 
raonth Treasury bills 12.44 per 
cent (10.50 per ceni six months 
ago). Annual inflation 6.8 per 
cent (7.7 per cent previous 
month) — The dollar rose to 
DM 2.2955 from DM 2.2S05 
against the D-mark; to 
FFr 5.9925 from FFr 5.9525 
against the French franc; to 
SwFr 1.9380 from SwFr 1.9225 
in terms of the Swiss Crane: and 
to Y235.25 from Y233.50 against 
the Japanese yen. 

.STERLING — Trade-weighted 
Index 90.4 against 90.6 at noon, 
90.5 in the morning, 90.4 at the 
previous close, and 90.7 six 
months ago. Three-month inter- 
bank 13/.- per cent per 

cent six months ago). Annual in- 
flation 10.4 per cent (11 per cent 
previous month) — The pound 
fell 1.45 cents to S1.8235-1.S245, 
after touching a low of Sl.8220- 
1.S235 in the afternoon following 
good demand for the dollar in 
U.S. markets. Sterling opened at 
S1.S350-1.S360. and rose to 
S1.S370-1.S3S0 in the morning. It 
fell to DM 4.19 from DM 4.1950. 
and to FFr 10.9250 from 
FFr 10.94, but rose to 
SwFr 35375 from SwFr 3.5350, 
and was unchanged at Y429.50. 

D-MARK — EiWS member 
(strongest). Trade - weighted 
index 125.4 against 125.5 on 
Wednesday, and 123.2 six months 
ago. Three-month interbank 
9.125 per cent (11.30 per cent 
six months ago). Annual infla- 


tion 5 per cent (5.2 per cent 
previous month)— The D-mark 
gained ground against nearly all 
major currencies, except the 
dollar and sterling at the 
Frankfurt fixing. Expectations of 
a rise in Hus week's U.S. money 
supply figures pushed up the 
dollar to DM2.2939 from 
DM 2.2765, and the pound 
improved to DM 4.2090 from 
DM 4.1960. The Swiss franc fell 
to DM 1. 1534 from DM1.1921, 
and the Japanese yen to DM 9.795 
per 1.000 yen from Y9.805. 
Within the EMS the guilder 
declined tn D11 89.96 per 100 
guilders from DM89.965, and 
the French franc to DM38.31 
per 100 francs from DM 3S.35. 

ITALIAN LIRA— EMS member 
(weakest). Trade-weighted index 
54.4 against 54.5 on Wednesday 
and 56.1 six months ago. Three- 
month interbank 2011 per cent 
(22 per cent six months ago). 
Annual inflation 15.5 per cent 
(16.1 per cent previous month) 
— The lira weakened against 
major currencies at the Milan 
fixing, with the dollar particu- 
lar! v firm. The U.S. unit rose to 
LI, 273.55 from LI. 365.30. while 
the D-mark moved near a record 
high, after shewing a downward 
trend earlier in the day. The 
German currency eased to 
L554.75 in the monring, but 
recovered to L555.66 from 
L555.12 at the fixing. The Dutch 
guilder also rose slightly to 
L499.73 from L4 99.30. and the 
French franc to L213 from 
L212.76. 

JAPANESE YEN — Trade- 
weighted index 138.3 against 
139.0 on Wednesday, and 139.2 
six months ago. Three-month 
bills 7.15625 per cent (7.40625 
per cent six months ago). Annual 
inflation 2.8 per cent (3.1 per 
cent previous month) — The yen 
lost ground to Hie dollar in 
modest Tokyo trading. The 
market was nervous and quiet 
on the lack of new factors, await- 
ing today's release of the U.S. 
money supply figures. These 
are expected to shew a small 
increase. The dollar rose to 
Y234.15 from Y231.821, after 
epeniag at Y234.30. and gloving 
within a range of Y233.90 to 
Y234.70. 


□ay's 

May 13 spread 


U.S. 1.8220-1.8380 1.8235-1-8245 0.Z7-O.37C dis 
Canada 2.2370-2-2800 2.2580-2^580 0,65-0,7Sc tils 
Nathlnd. 4.641*4.891* 4.65-4.66 1^-T.c pm 

Belgium 79.00-79.75 79.05-79.15 22 -32c dls 

Denmark 14.17-14.29 14.18-14.19 SVIOWa dm 

Ireland 1.2080-1.2190 1-2090-1-2100 0-SXO.74p dls 
W. Gar. 4.17V4.22 1 : '4.18V4-19 1 * 1V1 ! ipl pm 

Portugal 127.00-128.75 127.25-127.75 110-395c dis 


iV-l’ac pm 
22 -32c dla 

9^-UPaore dj» 


Spain 

Italy 

Norway 

France 

Sweden 

Japan 

Austria 

Switz- 


186.10-187.70 186.15-188.35 SS45c dla 

2.322-2.339 2.323-2^25 21-24 lira die 

10.81-10.89 10.82-10.83 SV&rore dls 

10.91.10.99 10.92-10.93 SV10*»c dis 


10.81-10.89 

10.91-10.99 

10.49-10.55 

427-433 

29.45-29.70 

3£2L r 3.E7H 


10.494-10.50>* 4ore pm-*, dls 
429-430 2.30-2. OOy pm 

29.47-29.52 13V10>*gro pm 
3-53V3.S4** 3V-3HC pm 


% Three •; 

p.a. months p.a. 

-2.10 0.72-0 .82 din -1.89 
-3.72 7 JO- 1 . SOdis -2.74 
3.87 4 pm 3 J7 
-4.10 55-75 dis -3.54 
-8.19 21V22’.dl* —5.26 
-8.80 1.86-2. 03d is -6.43 
4.65 4V-4>« pm 4.29 
-23.78 325-WISdie -21.02 
-4.83 22D-2S5dis -5.10 
-11.62 84-87 dis — 11.27 
-6.85 12 , j-13 : !idis -4.92 
-10.18 25-Z7 dls -9.52 


— pm 0.17 

8.01 6.466.15 pm 5.87 
4.93 33VZ7 pm 4.10 
11.45 SW. pm 9.75 


Belgian rate is for convertible franca. Financial franc 87-20.37, 30. 
Six-month forward dollar 1.28-1. 38c dis. 12-month 2. 10-2. 30c dis. 

THE DOLLAR SPOT AND FORWARD 


UKt 1.8220-1.8380 1.8235-1.8246 0.2741.37c dis 

Ireland* 1.5060-1.5110 14080-1.5075 0.624.64c pm 

Canada 7 4380-7 444S 1.2380-1.2385 0.160.18c dis 

Nethlnd. 2.54562.5520 2.5490-2. 5520 1.361.28c pm 

Belgium 4344-4347 4345-4347 9-1 3c dls ' 

Danmark 7.7410-7.7800 7.7720-7.7750 3V3Vor* dls 
W. Gar. 2.2840-24970 2.2950-2.2960 1.30-145pf pm 
Portugal 69.50-70.30 6940-7040 50- 200c cUs 

Spam 102.05-10245 102.20-102.30 20-23c dis 

Italy 1,271* *-1.275*4 1,273V1.Z74»« 9> r 11 lire dis 


W. Gar. 2.2840-249: 
Ponugal 69.50-70.30 


Spam 

Italy 

Norway 

Franca 

Sweden 

Japan 

Austria 

Swuz. 


% Three % 

p.s. months p.a. 

-2.1CT 0.72-0.82d» -1.89 
4.61 1.85-1.70 pm 4.71 
-1.80 0464J.39dis -119 
648 3.75-3.65 pm 5.80 
-3.04 21-25 dis -2-1Z 
-549 8V9 dis -4.50 
8.66 3.45-3.40 pm 5.97 
-21.45 150-52Sdis -19 31 
-242 80-95 die -3.42 
-9.85 29-31 dis -9.42 


5.9060-5.9400 5.3375-5.93® 2.10-2.50ora dla -4.66 4.60-6.00dis -3.24 


ee' 5.9725-5.9975 5.9900-5.9950 4 . 40 -4. 90c dls -942 12-13 dis -8.35 

den 5.7290-5.7590 5.7560-5.7580 1.20-1.05ora pm 246 2.75-2.60 pm 1.86 

n 233.86235.50 235.20-23540 1.67-1-59y pm 8.31 4.50-4.40 pm 7.57 

na 18.12-18.18 16.14VI6.15 3 ! 10V9gro pm 7.14 2622 pm 5.81 

z. 1.9300-1.9450 1.9375-1.9385 2.17-2.09C pm 13.19 S. 56-6. 48 pm 11.33 

t UK and Ireland are quoted in U.S. currency. Forward premiums and 
discounts apply to the U.S. dollar end not to the Individual currency. 


CURRENCY MOVEMENTS CURRENCY RATES 


Ban* of ( Morgan 
England Guaranty 
Index [Changes^ 

Sterling I 90.4 ; —33.1 

U-S. dollar. 118.4 *5.9 

Canadian dollar...,, 86.5 —194 

Austrian schilling. I 118.7 ; +86.4 

Belgian franc- 96.0 —1.4 

Danish kroner. 85.2 —12.2 

Oeutsehe mark 126.4 +48.6 

Swiss franc 148.1 +97.1 

Guilder 115.7 +21.9 

Franoft Trane ' 79.9 < —24.5 

Ur* 54.4 ■ -884 

Y en 1384 ^-32.8 

Based on trade weighted changes from 
Washington agreement December. 1971. 
Bank of England index (bass average 
1975=100). 


| Bank] special I European 
1 rate Drawing Currency 
' * 1 Rights Units 


OTHER CURRENCIES 


Sterfing._...i — i 

U.S. 5 \ 12 I 

Canadian S_.16.16 
Austria SehJ 6**, 
Belgian F m _| 14 ; 
Danish Kr.J 11 1 
D mark.— J 7ij 

Guilder. J 8 : 

French Fr....' 9ig 

Ura_. 19 • 

Yen ! 5*e 

Morwgn, Kr.; 9 > 
Spanish Pts. 8 
Swedish Kr. j 10 
Swiss Fr—_ 5ig 


0.620058 
1.13952 . 

a I 

28.4192 1 
49.5640 
8.86262 
2.61394 
2.90635 I 
6.B1433 
1451.18 ' 
267.331 
6.74824 , 
116.392 , 
6.53857 ; 
2 20839 ' 
71.1117 


Greek Dr'eh. 20*a 71.111? 
•C5/5DR ret* lor May 12; 


Currency 

Units 

0.567733 

1.04049 

1.39436 

18.8090 

45.0764 

8.08717 

2.38531 

2.65272 

6.22470 

1324.54 

243.858 

6.15863 

106.317 

5.97447 

2.01646 

64.9515 



FT LONDON INTERBANK FIXING (11. 


MAY 13) 


3 months U.S. dollar* 


6 months U.S. dollars 


bid 148MB , offer 14 IMS J bidl4ril offorl4B8 


The fixing rates are the arithmetical means, roundsd to the nearest one-sixteenth, 
of the bid and offered rates for SI Dm quotsd by ths market to five reference banks 
at V am each working day- 77»» banks are National Westminster Bank, Bank Of 
Tokyo. Deutsche Bank. Ban cue Nationals do Paris and Morgan Guaranty Trust 


EURO-CURRENCY INTEREST RATES (Market closing Rates) 


Sterling 


Shortterm -... 13-13U 

7 days’ notice — 137* -13 4g 

Month 

Three months. t lam-ifr* 

Six months. 5** 

One Year— 13 *6-13 w 


Canadian i Dutch 


; French 
D-mark ; Franc 


i Conv. 


Belgian Franc 


15-lSlj 17-18 
151«-15 Sb 17-18 

14|;-15* 16Jb-164 4 

14's-14i» 1568-16 

14»8-14Sb 15U-1St b 
14,v-14 ; v i 13U-167# 


18-20 
21-2514 
23*4-2414 
2356-24*4 
23JS-24 
23 24 


15- 17 147a-15sg 

17-19 15-15*4 

17-1B 14H-14H 
1717* a 14i*-l*f* 

16- 16*2 14*2-1458 


65.-7 i207$-21*4 

Bfc-Bfc '204<-21l, 
6i B -7 I Zl-2l4a 
&Hj-7A j Ml? 2D7 b 
6«-7* : 19-19* 

6r s -7 I 18-18 le 


oMYear^::::::::::l i rofS I syssiSESgl S3** i i ass tasssi iT» i w-«k i w ** 


’ SOR Mirked deposits: one month 13V13'* par cent: three months 12*V-13> V" cent: six month* UVUfc percent: one jmrt&rKhvn uni- 
ECU linked deposits: on* month 14*^14',, per cent: three months 13“,,- 14^ percent: air months J3V-M per cent: one year 13V 134 Per cci ni. 

Asian S (olcs*na rales in Singapore): one month UV15 per cent: three months 14*_14», per cent: *>« months P|r «nt: one year 14 *h- 14»» per cent. 

Lono-wnti Eurodollar two years 1<**»-14», per ten*: threo yaers 14VHN per cant; tour years 141,-15 nor cent: five years HVlS^ por cent: nominal closing rales 
Short-term rates arc co'4 for U.S. dollars. Canadian dollars and Ja panose yen: others two days’ notice. , ,, 

The following rates were quoted lor London dollar certificates of deposit: ono month t4.5q-14.6o per cent three months 14.20-14 40 ocr cent; six months 14.15- 
14.25 per con*; one year 14C5-14.I5 per cent. 


MONEY MARKETS 


UK rates little changed 


JJK clearing bank base lending 
rate 13 per cent (since 
March 12) 

Interest rates were slightly 
higher in London yesterday, 
edging up on news of further 
military clashes around tlte Falk- 
land Islands. Market uncertainty 
was reflected in the flat yield 
curve shown by most paper out 
to one year. 

Day to day credit was in short 
supply in the money market and 
the Bank of England forecast a 
shortage of around £350m. 
Factors affecting the market 
included bills maturing in official 
hands and a net take-up of 
Treasury bills — £222m. Ex- 
chequer transactions -£10m and 
a rise in the note circulation of 
£30m. During ihe morning the 
Bank gave assistance of £10Sm. 
making purchases of eligible 
bank bills. £29m in band I cup 
to 14 days) at 13J per cent, £63m 
in band 2 (15-33 days) at 13 per 
cent and in band 3 (34-63 da vs) 
£lBm at 122 per cent. 

The shortage was later revised 
to £450m before taking into 
account the morning's operations 

MONEY RATES 

NEW YORK 

Prime rare 10’ s 

Fed. lunds (lunch -time) 14V1S 3 , 

Treasury hills fi3-weck) 12.44 

Treasury bills (26-week) 12.48 

GERMANY 

Lombard - 9.00 

Ovemiphc rale 9.Q2S 

One month 9.225 

Three months 9.125 

Six months S.8S 

FRANCE 

Intervention tats 16.0 

Overnight rate 16.375 

One month 16.1375 

Three months 16.1375 

Six months 15-3125 

JAPAN 

Discount ram 5.5 

C«*H (unconditional) . 7 28125 

Bill discount (thmo-month)... 7.1S625 


and the Bank gave additional 
help oF £165m, making a grand 
total of £273m. The afternoon 
help was made up of purchases 
of flOm of local authority bills 
in band 1 at 13 & per cent and 
£5ftm of eligible bank bills at 
134 per cent In band 2 it bought 
I3m of local authority bills and 
£65m of eligible bank bills 13 
per cent In band 3 it bought 
£5m of local authority bills and 
£23m of eligible bank bills all 
at 12? per cent 

Discount houses were paying 
between 12 per cent and 13J per 
cent for secured call loans while 
overnight interbank money 
traded between 13 per cent and 
24 per cent 

In Now York trading was quiet 
with the market remaining firm 
ahead of economic indicators due 
today. These include the Pro- 
ducers' Price index and weekly 
money supply figures. 

In Frankfurt the Bundesbank 
announced a further repurchase 
agreement with a minimum rate 
of S.6 per cent This is com- 


pared with 8.9 per cent the last 
time such a facility* jyas offered. 
The new repurchase plan wifi 
have a maturity period of 28 days 
with applications received, and 
allotments made today. Funds 
will enter the market on Monday. 
In the money market call money 
was left unchanged from Wed- 
nesday at 9.025 per cent 


Canadian $ 

7IMnf-Wf*GW» 

inofje 

, A“uoa« 1955*100 


EUROCURRENCIES 

Swiss franc 
rates ease 

Euro-Swiss franc rates were 
weaker yesterday, pushing the 
franc sharply firmer in forward 
trading. The market was react- 
ing to further cuts in domestic 
interest rates. The Swiss francs 
premium was further 
strengthened by a rise in Euro- 
dollar rales and a firmer 
tendency in Euro- D-mark rates. 
Euro-dollar rates were higher on 
an unexpected rise in retail 
sales figures together with com- 
paratively high Federal fund 
rates. Consequently the dollar 
tended to weaken in forward 
trading. Euro-Dutch guilder 
rates were firmer, reflecting con- 
cern over recent political uncer- 
tainty while Belgian franc 
forward rates showed a smaller 
discount after Wednesday’s 
weaker trend. Euro-sterling rates 
were again little changed. 


LONDON MONEY RATES 


Sterling : 

May 13 Certificate , Interbank 
IBB 2 Of deposit , 

Overnight- — 13-1* 

2 days notice.. — — 

7 days or — j — 

7 days notice... — 13 132s 

One month- 13* -13* ! 13-13* 

Two months.... 13*8-13 | I5-I5i* 

Three months. 13rii-12ff i 13-l3,v ! 
Six monTha...-,i ’ 13-13rV 

Nine months-.. 13^12*3 I 13-13re ! 

One year— ’ IS^-iara J 13-13,+ 

Two years — j — ! 


Looai Local Auth.i Finance ■ Discount 

Authority -negotiable 1 House Company Market Treasury' tank Trade 
deposits ( bonds Deposits ' Deposits ; Deposits Bills* ■ Bills* ■ Bills* 


13-13% i 
187 S -13 j 

12*8-13 ! 

13 


12-1314 — 


135g- 13 J* 
1318.13*4 
13*1-13*4 
12*8-19* 

1518-13 

13*4-13 


! 13*j 12*4-13 

13*8-13*9 12t 3 

13*8 12*8-13*4 

: I3*s i 12*9 


13-13;* 13-13.J, 

12*1 12Vl2br 
13*2-12* 12*3-12. ,, 
— 12tjrl3>4 


local authorities and finance houses seven days' noftM. othora sevwr days freed, long-term local authority martaa-ra 
rates, nominally three days 13 r « dot cent: lour years U ocr cent: live vurs W psr cent. +Baftfc b H rates in table are 
buying rates lor prone paper. Buying rates for four-month bank bills 12V124 per cent; lour months trade b«1s 13^ per 

AoDFOXrnull sailing rates for one month Treasury bills 1Z**» per cent; two man ths 12Y12D U pc r eont: tnrec monihs 
12 7 u per cant. Approx'rrm* selling rale lor one month bank b>lla 12 r »-12*„ oar cent: two month* 12V12**-.* ll-oi 
and rtirea month* 12*4-12*! per cant: on* monte trsda bills 13*« per coni; two months 13 .per cany three months 12’, per 
cent. 

Finance Houses Bass Rates (oubtishad by th* Finsnca Houses Association) 14 per cent Irani Moy 1 1382. London 
and Scottish Clearing Bank Rates lor landing 13 per eont London Clearing Bank Deposit Ratos lor sun*3 a* seven days’ 
notice IQ-KHi oar cent. Treasury Bills: Average tender rates cl discount 12.0180 per cent. 

Cert 4i catOs 9f Tax Deposit [Senes 6) 13*, per cent born March 8. DonosUa w«t-itlrawn lor cash 11 ocr cent. 













































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Financial Times Friday May. 14 .1982 


I INDUSTRIALS — Continued 


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42 


Balfour Beatty 
Builds Better 

IB 01-686 8700 



Friday May 14 1982 



EIGHTH OFFSHORE PACKAGE TO BE ANNOUNCED SOON 

N. Sea licence auction plan 

BY RAY DAFTER, ENERGY EDITOR 


Creditors 
surprised 
by Braniff 


THE LEX COLUMN 




THE GOVERNMENT is plan- 
nings to auction North Sea drill- 
ing concessions as part of an off- 
shore licensing package due to 
be announced within the next 
few days. 

It is understood the Govern- 
ment will ask oil companies to 
hid for a limited number of 
licences in the more promising 
areas of the North Sea. But it 
■will operate the normal discre- 
tionary licensing system for the 
remaining blocks which will be 
offered in various parts of the 
UK Continental Shelf. 

Frontier areas in unexplored 
deep water and southern North 
Sea concessions expected to 
yield natural gas rather than 
oil will probably also fdsvur# 
in the eighth round of licences. 

Details of the new licences, 
to be formally offered later this 
summer, are expected to be 
given by Mr Nigel Lawson, 
Energy Secretary- hi the Com- 


mons on Monday. Mr Lawson 
is due to answer a question 
tabled by Mr Hugh Dykes (Con, 
Harrow East). 

It is thought the Government 
has opted for an auction in pre- 
ference to the system of bonus 
Licences introduced in the last 
round in 1980-81. Then com- 
panies contributed £2 10m to the 
Treasury by paying £5m apiece 
for North Sea licences of their 
choice. 

Mr Lawson may extend this 
system by inviting companies to 
bid for their favoured blocks. 
The Government has two baste 
options. It can merely award 
blocks to the highest bidders. 
Or it can take into account the 
amount offered, together with 
other aspects of the bidding 
companies — such as their 
nationality, financial status and 
past record of North Sea work. 

The UK Offshore Operators' 
Association, which represents 
the oil companies and will 


probably be consulted about the 
terms of the eighth round 
licences, lias always opposed the 
concept of adding cash to the 
discretionary licensing system. 
The association argued that it is 
impossible <to put a cash value 
on various criteria. 

The association has also 
urged the Energy Department 
to relax the licensing terms for 
the deep water, frontier areas. 
Mr George Williams, director 
general of the association, said 
last night that while companies 
might find oil in water depths 
of 2,000 to 3.000 feet, it could be 
20 years before technology was 
found to exploit such finds. 

It is thought that the Govern- 
ment is anxious to include such 
frontier areas in its licensed 
blocks in order to obtain fur- 
ther information about the 
country's oil-producing poten- 
tial. 

The Government is believed 


to be aiming for an eighth 
round roughly on the scale of 
the seventh, an which 91 blocks 
■were awarded — the hi^iest 
number since the fourth round 
in 1971-72. The fourth round 
is the only one so far to have 
incorporated the auction 
system. Some £37 m was raised 
through the experimental 
auctioning of 15 blocks. 

The eighth round will be an 
acid test of the oil industry’s 
confidence in the North Sea. 
Companies are complaining 
bitterly thait oil taxation is too 
high and that the small fields 
which are. likely to he found in 
the future will be uneconomic 
to develop. 

But Mr Williams said com- 
panies would continue to bid for 
exploration acreage, irrespec- 
tive of the tax system. They 
would bid in the hope that 
financial conditions would 
become more favourable. 

Exploration slackens. Page 9 


Open tender for computer contract likely 


BY ELINOR GOODMAN AND GUY DE JONQUIERES 


A PLAN to put to open tender 
a multi -million-pound order for 
computers for the Driver 
Vehicle Licensing Centre, 
Swansea, is expected to be 
announced soon by the Govern- 
ment. The decision is still sub- 
ject to final review. 

It would enable foreign com- 
puter-makers like International 
Business Machines to compete 
directly lor the first time with 
Britain’s ICL in bidding for a 
major prestige government con- 
tract 

The Prime Minister is keen 
to encourage purchases of 
British high-technology equip- 
ment whenever possible. A 
special ministerial committee 
which she set up last year has 


concluded, however, that inter- 
national agreements would make 
it legally impossible to give ICL 
preferential treatment in this 
instance. 

Just over two years ago the 
Government decided, after 
months of anguished discus- 
sion, to award ICL a £60m con- 
tract to computerise the 
Inland Revenue's Pay As You 
Earn operations on a -single- 
tender basis. This was in spite 
of vigorous lobbying by IBM 
and other U.S. suppliers. 

Since then EEC and General 
Agreement on Tariffs and 
Trade rules have come into 
force requiring Britain to 
throw open the bidding for 
central government computer 


contracts to tenders from 
domestic and foreign makers 

If a decision were made to 
offer ICL the licensing centre 
contract on a single-tender 
basis there is a strong risk 
foreign makers would challenge 
it at the European Court, in 
Luxembourg 

Swansea's existing computers 
were supplied by ICL about 10 
years ago. The installation was 
dogged initially by operating 
problems but has undergone 
extensive technical modifica- 
tions and appears to be 
functioning smoothly. 

A loophole in the EEC and 
Gatt rules allows governments 
to award orders to national 
computer-suppliers on a single- 


tender basis when the work 
involved is a follow-on to 
contracts carried out earlier by 
the same makers. 

-The loophole would almost 
certainly not apply in this 
instance because the Govern- 
ment seeks to replace the 
Swansea computers with an 
entrely new system rather than 
to install additional equipment. 

The decision to put the con- 
tract' to open tender could 
arouse political controversy in 
Britain. The Government is 
expected to defend it however, 
on the grounds that even if the 
order goes to a foreign maker 
like IBM the equipment is likely 
to contain a high proportion of 
UK-made content 


Yen credit 
offer to UK 
and U.S. 


Civil service unions look set for 
confrontation with Government 

BY PHILIP ©AS SETT, LABOUR CORRESPONDENT 


exporters 

By Charles Smith, 

Far East Editor in Tokyo 

BRITISH AND U.S. companies 
will be able to draw on cheap 
credits from Japan to finance 
exports to third countries 
under agreements announced 
yesterday by the Ministry of 
Finance in Tokyo. 

The arrangement, reached 
between the Japanese ministry, 
the U.S. Eximbank and 
Britain's Export Credits 
Guarantee Department, means 
that yen-denominated loans — 
which will be cheaper than 
sterling or dollar financing- 
will be extended by Japanese 
batiks to the exporters or their 
customers in other countries. 

The loans will carry guaran- 
tees by the ECGD or the Exim- 
bank (os the case may be) and 
will be priced at the same level 
as loans made by Japan's own 
Eximbank to Japanese 
exporters, under Organisation 
for Economic Co-operation and 
Development guidelines. 

The guidelines proposed for 
Japan at the latest OECD con- 
ference on trade financing held 
last week in Paris stipulates 
that export loans will carry a 
0.3 percentage point premium 
over Japanese prime rate, now 
at 8.4 per cent. 

A Ministry of Finance official 
in Tokyo yesterday said he 
doubted that the new system 
would result in a flood of 
applications for these loans. 
They appear likely to be offered 
as one of a number of possible 
financing options to potential 
customers. 

Japan hopes the agreement 
will be seen as evidence of its 
willingness to " pull its weight” 
in world trade — and as proof 
that controls on external use of 
the yen are not as rigid, as 
sometimes alleged. 

The arrangements may serve 
as a pattern for similar agree- 
ments with other Western 
countries. 

Giles Merritt writes: In 
another, attempt to ease trade 
frictions. Japan has undertaken 
to announce fresh measures to 
ease import restrictions, in 
advance of next month’s 
economic summit talks in 
Versailles between it and the 
U.S.. West Germany. France, 
Britain, Italy and Canada. 

This pledge, which follows 
Japan's liberalisation of import 
barriers affecting 67 products 
last January, was given by Mr 
Shlnlaro Abe, the Japanese 
Minister of International Trade 
and Industry, at trade talks near 
Chartres between Japan, the 
U.S.. the EEC and Canada, 

Mr Abe said he could only 
give a “sketchy” indication of 
the package, which would 
include “ considerable reduc- 
tions" in tariffs for manufac- 
tured goods. 

Bid for World Bank Fund, 

Page 5 


THREE CIVIL service unions 
yesterday positioned themselves 
for confrontation with the Gov- 
ernment. This follows the Gov- 
ernment’s defeat of the civil 
service unions' campaign of 
industrial action last year. 

• Left wingers won a sweeping 
victory in executive elections in 
the Civil and Public Servants 
Association, the biggest civil 
servants’ union, and secured the. 
election as union president of 
a hard-line supporter of the 
Labour Party’s Militant' 
Tendency. 

• The conference of the Society 
of Civil and Public Servants, 
the second biggest threw out 
an existing agreement between 
the unions and the Government 
on the introduction of new tech- 
nology. This was one day after 
the CPSA's conference had 
done the same. 

• The conference of the First 
Division Association, which 
organises top civil servants, 
backed its executive’s position 
of support for the TUC's cam- 
paign of opposition to the em- 
ployment legislation. 

The announcement yesterday 
at the CPSA's annual confer- 
ence in Brighton of the elec- 
tion of Mr Kevin Roddy as 
president — and an executive 
committee split 23-3 in favour 
of the left — throws into doubt 
recent agreements with .the 
Government. 


Previously it was thought that 
decisions by the union’s rank 
and file to go back on agree- 
ments on the introduction of 
new technology and on time off 
for union duties — the only 
agreements the unions have 
signed since last year's 21-week 
strike over pay— would be cir- 
cumvented by voting on the full 
Council of Civil Services Unions. 
This is the co-ordinating body 
for all the unions in the civil 
service. 

However, the sheer strength 
of the left in the CPSA now 
means that the commitment to 
withdraw from these agree- 
ments will be pursued much 
more forcibly, and the union's 
elected leadership may not feel 
bound by a majority decision 
of the council. 

The dominance of the left in 
the CPSA also makes sharp 
reaction more likely to the 
forthcoming report of the in- 
quiry into civil service pay, 
headed by Sir John Megaw. One 
moderate CPSA leader said 
yesterday: “They want an all- 
out strike, and I suppose they 
will eventually bet it. Then we 
wil lhave to start all over again. 

The election of Mr Roddy is a 
particularly galling blow for Mr 
Alistair Graham, general secre- 
tary-elect, who in the deputy 
general secretary's election 
mounted an unprecedented 
campaign against the Militant 
candidate. He made no secret 


of his opposition to the activi- 
ties of Militant supporters in 
the union. They, however, can 
now command an overwhelm- 
ing majority on the union’s 
broad left alliance. 

Mr Roddy was elected by 
23,210 votes, against the 21,515 
polled by Mr Charlie Elliott, 
the right’s candidate. Mr Elliott 
failed even to secure a place on 
the national executive because 
of union rules on the number 
of executive places for staff 
from each government depart- 
ment. 

The ideological clash between 
the moderate Mr Graham and 
Mr Roddy is likely to be 
intense. Mr Graham said 
yesterday that he did not wel- 
come the prospect of the elec- 
tion nf. such ’’a firm Militant 
supporter as Mr Roddy 
“because I feel very strongly 
about t\e role of Militant in 
the CPSA." 

Mr Roddy hoped that differ- 
ences between them could be 
resolved within the union’s 
democratic procedures. 

The outgoing president. Mrs 
Kate Losinska, leader of the 
union's right wing, failed to win 
the senior of the two vice- 
presidencies, which went in- 
stead to Mr Ray Alderson, a 
member of the Communist 
Party, who polled 29,183 votes 
to Mrs Losinksa’s 28,393. 

Tcbbit Bill opposed. Page 10 


EEC budget 


Continued from Page 1 


UK during the Fa Ik lands crisis 
— support still needed in the 
discussion due this weekend on 
whether the EEC will renew 
its ban on imports from 
Argentina. 

Both Mr Tlndemans and M. 
Thorn are desperately anxious 
to avoid a bitter clash at a 
meeting of agricultural minis- 
ters on Monday when the 
other nine member states are 
expected to make a fresh 
attempt to push through a 10.7 
per cent farm price package 
over British abjections. 

They are hoping for another 


attempt to settle the British 
budget row between foreign 
ministers meeting at the week- 
end. 

The Council of Ministers was 
urged to adopt the farm price 
package in an emergency 
resolution passed by the Euro- 
pean Parliament yesterday. The 
resolution also called on the 
president of the Parliament to 
take the council to the Euro- 
pean Court for the delay and 
called on the council to abandon 
the so-called Luxembourg com- 
promise. 

This informal agreement — 


dating back to 1966 — requires 
unanimity on issues which any 
member Government declares 
to be of vital national interest. 
It was invoked by Mr Peter 
Walker at a meeting of EEC 
Farm Ministers last Tuesday. 

Sir Heniy claimed that a 
major ity of British Conserva- 
tive MEPs were in favour of 
Britain dropping the link 
between farm prices and a 
settlement of its budget 
demand. The Government he 
said, ought to allow the price 
package through on a majority 
vote, without invoking the 
Luxembourg compromise. 


Tory backbenchers Continued from Page 1 


meeting of the party's baric 
bench 1922' committee. 

Hie Conservative business 
managers recognise that Che con- 
cern goes beyond the 20 to 30 
MPs Of the hard core Tory Right 
but they believe that opinion is 
volatile and could be contain- 
able if Mrs Thatcher supports 
any deaL 

It is too early to talk of any 
open splits within the Cabinet 
since no decision has had to be 
faced on whether to accept any 
UN deal. There is also agree- 
ment on the current mix of 
diplomatic and military pres- 
sure. But there is a difference 


of emphasis and tone between 
Mrs Thatcher’s determination to 
avoid any “sell-out" and Mr 
Pym’s obvious keenness to pur- 
sue negotiations for as long as 
possible. 

The Government was given 
the mixed blessing of the strong 
support of Air Edward Heath, 
who urged flexibility in negotia- 
tions, thus provoking criticism 
from fellow Tory MPs. 

Mr Denis Healey, the deputy 
Labour leader, offered a continu- 
ation of bi-partisan support for 
current policies and urged that 
negotiations be continued. His 
evident intention was to support 


Mr Pym against what he 
described as the “ militarist ten- 
dency " within the Tory Party. 

Mr Healey strongly opposed 
any bombing of mainland Argen- 
tine airfields, preferring a 
strategy of prolonged blockade 
if talks failed. 

In his speech, Mr Pym said it 
was important that Argentina 
should recognise there are 
issues on which Britain is “jus- 
tifiably immovable." referring to' 
the withdrawal and no pre-judg- 
ing of sovereignty points, in 
order to make greater progress 
in other areas- “where some flexi- 
bility is possible." 


bankruptcy 


By Richard Lambert in New York 


CREDITORS of Braniff Inter- 
national expressed surprise 
yesterday at the airline’s deci- 
sion to suspend operations and 
file for protection under 
chapter 11 of the U.S. federal 
bankruptcy laws. 

The ~ company's major 
lenders include Boeing and 
several large insurance com- 
panies, as well as a wide 
range of U.S. banks. Braniff 
bad been trying to reorganise 
Its borrowings of more than 
3700m (£3 84m), and had not, 
lenders said, given any indica- 
tion of its plan to suspend 
operations. 

One bank said the decision 
followed a steep faU in 
Braniflfs load factors in recent 
weeks, the result of growing 
uncertainty about the airline's 
financial position. Braniff 
confirmed the move was made 
on its own initiative and 
resulted from continuing cash- 
flow problems. 

Hr Howard Putnam, its 
chairman, said the petition 
for protection should provide 
the airline with a chance 
of “ rehabilitation." Under 
chapter 11 a company is pro- 
tected from creditors while it 
tries to reorganise its financial 
affairs. 

A Braniff official said the 
airline hoped to resume 
several services. Some 
lenders, however. were 
sceptical about this possi- 
bility. 

Mr Putnam told a Press 
conference In Dallas: “ .Well 
be back— whether under the 
name of Braniff or someone 
else." He said cheques due 
to be. paid to BranifFs 9,000 
or more employees would not 
be honoured. “There is no 
money out there,” he said. 

Explaining the timing of 
BranifTs move, he said: “We 
took the action at an tmnsnal 
hour because of the fear of 
creditors’ actions against ns." 

On Wall Street the share 
prices of rival airlines were 
marked up sharply on the 
news of Braniff filing for pro- 
tection. A flood of buying 
orders delayed fbc start of 
trading in shares of American 
Airlines. BranifTs Texan rival. 
These shares opened eventu- 
ally at 161, HP 1 1/5. 

Other airlines reacted 
swiftly to BranifTs shut-down. 
Eastern Airlines, which had 
agreed to take over most of 
BranifTs South American 
routes from June li began 
some of the services yester- 
day. It hopes to offer the 
full range In a few day’s time. 

Delta Airlines asked the 
U.S. Civil Aeronautics Board 
for immediate permission to 
replace Braniff’s flights from 
Dallas-Forth Worthdo London. 


Weather 


UK TODAY 

SUNNY periods with some 
outbreaks of rain. 

E. E and central N. England, 
id E Midlands 
Sunny periods. Max. 26C 
(79F). 

entral Southern and W. 
England, W. Midlands, Wales 
id W. Scotland 
Bright or sunny periods, out- 
breaks of thundery rain later. 
Cooler on coasts. Max. 24C 
(75F). 

E England, E. and N. Scotland 
Sunnv intervals. Some fog. 
Max. 20C (68F). 

. Ireland 

Cloudy. Thundery rain, be- 
coming brighter in east. Max. 
18C (64F). 
utlook: Little change. 


WORLDWIDE 


Ajaccio 

5 

Y'dey 

midday 
»C *F 
13 66 

L. Ang.t 


Vday 
midday 
■C "F 

Alqiera 

C 

19 

G6 

Lukin bg. 

S 

19 

E6 

A ms dm. 

S 

IB 

61 

Luxor 

S 

25 

35 

Athens 

s 

28 

82 

Madrid 

S 

24 

75 

Bali ram 

s 

30 

86 

Majorca 

s 

20 

69 

Barchra. 

s 

18 

64 

Malaga 

F 

19 

G6 

Beirut 

s 

28 

82 

Malta 

R 

21 

70 

Belfast 

R 

16 

61 

M'chsTr. 

S 

22 

72 

B algid. 

F 

19 

66 

Moibne. 


— 

— 

Sorf/n 

5 

16 

81 1 

Me .C.t 


■ — 

— 

Biarm 

S 

26 

79 1 

Miamit 


— 


Bmqhm. 

S 

22 


Mrian 

s 

22 

72 

Blackpt. 

s 

23 

73 1 

Manirl.t 

c 

10 

50 

Bordx. 

s 

25 

77 

Moscow 

c 

14 

77 

Boulgn. 

s 

22 

72 

Munich 

s 

19 

66 

Bmtol 

s 

23 

73 

NarroW 


— 

— 

Brussels 

s 

2D 

68 

Naples 

s 

24 

75 

Budpst. 

s 

19 

66 

Nassau 


— 

— 

Cairo 


— 

— 

Nwcsrl. 

s 

17 

63 

Card'd 

s 

21 

70 

N York! 


— 

— 

Gas'b’ca 

s 

23 

73 

Nice 

s 

20 

ea 

Cape T. 

c 

IB 

64, 

Nicoam 

R 

27 

81 

Ch'cg.t 


— 

— | 

Oporto 

c 

IB 

64 

Cologne 

5 

20 

68 1 

Oslo 

5 

16 

61 

Cpnhrvn. 

s 

15 

59 1 

Pane 

s 

21 

70 

Coiius 

s 

25 

77 1 

Porrti 


— 

— - 

Oenvort 


— 

— I 

Prague 

s 

17 

63 

Du Win 

c 

14 

47 

Hykjvk. 

c 

a 

46 

Dbrvnk. 

s 

23 

73 1 

Rhodes 

s 

24 

75 

Ednbg-h. 

s 

IB 

59 

Rio J'of 





Nro 

s 

30 

68 

Rome • 

s 

23 

73 

Rorence 

s 

25 

77 

Salkbrg. 

s 

18 

64 

Franklt. 

5 

19 

66 

S'eiscot 




— 

Funchal 

C 

18 

64 

S. Mmz. 


— 

— 

Geneva 

s 

19 

66 

Sringspr. 

F 

31 

83 

Gibritr. 

c 

19 

66 

S'Hagot 


— 

— . 

Gl'sg'w 

s 

16 

61 

Ssckhtn. 

s 

12 

54 

G'msoy 

s 

20 

68 

Sttasbfl. 

s 

20 

68 

HWainW 

F 

8 

46 

Sydney 






H. Kong 

F 

30 

86 

Tangier 

s 

23 

73 

Innsbrk. 

s 

19 

66 

Toi Aviv 

s 

24 

73 

Invrn-ss. 

c 

10 

SO 

Tenenfe 

s 

21 

TO 

l.o.Men 

s 

13 

55 

Tokyo 

TVwot 

s 

25 

77 

Istanbul 

c 

16 

81 

c 

13 

65 

Jersey 

s 

23 

77 

Tunis 

s 

22 

72 

Jo' burg 

s 

20 

68 

Valencia 

5 

20 

68 

L. Pims. 

s 

23 

72 

Venice 

s 

21 

70 

Lsbon 

s 

21 

70 

Vienne 

s 

17 

53 

Locarno 

s 

' 19 

66 

Warsaw 

s 

16 

B1 

London 

s 

22 

72 

Zurich 

s 

19 

66 


c— Goody. F — Fair. iV-Fog. H— HrtH. 
R— Rain. S— Sunny. St— -Sleet. 
S^v— Snow. T— Thunder, 
t Noon GMT lorttfMra lures. 


its engines 


Braniff International has 
been defying gravity for longer 
than its shareholders and 
bankers Care to remember. The 
last balance sheet showed, debts 
of around $740m and a deficit 
on shareholders funds of 390m. 
It was little surprise that the 
group yesterday filed for 
Chapter XI protection from, its 
creditors. 

The sad irony of yesterday’s 
announcement is that the air- 
line sector in the U.S. has 
recently enjoyed an exception- 
ally good run on Wall Street 
The industry’s operating loss of 
$540m in the first quarter of 
1982 is widely regarded as the 
nadir. 

Losses should be now falling 
for seasonal reasons, if 
nothing else. But analysts are 
also expecting a cyclical re- 
covery in the second half of 
the year as the U.S. economy 
starts to move forward. Tariffs 
across the North Atlantic have 
risen since the Laker crash and 
the ending of a price war in 
Florida has provided evidence 
of more realistic tariffs within 
the U.S. 

But the stock market has 
been selective io its 
enthusiasm. The share price 
of Delta, a well financed group 
with a tight cost structure, has 
risen by over 20 per cent since 
early February, when the rally 
gathered momentum. The 
weaker companies could, still 
suffer, in the same way as 
Braniff, from the loss of 
customer confidence. The share 
price of Western Air Lines, for 
example, remains locked dose 
to 34. 


Index fell 5.7 to 5852 



few areas of recovery, including i 
fibre intermediates. But the , 
group is. obviously* braced for 
another grim year at-home: . > 




— 


— n 


. EL- Actuaries . " 

*1 CBt-fifeed Yield. Index 
" L (High Conpons) 



V 


2SYears. 



14% 


1 






US 

V 





□L 

V 



- j 

f H A 

1982 

u 

J 


Trident 


luJ- 7 


h 


capital expenditure' is r unning 
within depreciation, so the in- 
terest charge should stabilise. 
Meanwhile, it is gaining market 
share in TV in Europe at the 
same' time as the Japanese, 
while its VCR is gradually -gain- 
ing acceptance From now on 
each quarter should be showing 
comfortable Improvements in 
profits against the comparable 
period. The shares slipped FI 
0.20 yesterday to FI 24.80, where 
the yield is an undemanding 7.3 
2§r cent 


Philips 


Philips has the image of a 
worthy and somewhat stodgy 
company operating in the area 
of consumer electronics most 
vulnerable to Japanese competi- 
tion, and in recent years London 
brokers have rafter lost interest 
in following its fate. This is a 
pity, since the price now stands 
69 per cent above its low point 
in 1981. 

The latest figures, for the first 
quarter of 1982, show a 13 per 
cent decline in net profits 
against the comparable quarter, 
due mainly to the higher level 
of interest charges. Underlying 
trading profits are up 10 per 
cent, helped by a 5 per cent 
gain in volume and improving 
margins as the company's 
rationalisation begins to pro- 
duce returns. Evidence of a 
turaround can be seen in the 
60 per cent gain in net profits 
by comparison with the immedi- 
ately preceding three months. 

The company has been paring 
back working capital, while 


BASF 

The first quarter figures from 
BASF paint a sorry picture of 
volume trends in most of its 
major markets. Last year, rising 
export volumes helped to pro- 
tect the West German chemical 
majors from the stagnation of 
the domestic economy but .witch 
US. sales now falling sharply, 
relief is hard to find. 

Pre-tax profits have fallen 
38.1 per, cent- to DM 276m in 
the three months to March. 
There has been some improve- 
ment compared with the previ- 
ous quarter but, after allowing 
for seasonal factors, the trend 
remains clearly downward. 
BASF has recently reduced its 
low-density polyethylene capa- 
city by about 160,009 tonnes per 
year but more closures in the 
commodity plastics division 
must be on the cards. 

The decline in spot oil prices 
has applied further pressure on 
the margins from refinery pro- 
ducts at a time when -BASF is 
locked uncomfortably into long- 
term supply contracts for feed- 
stock. As a sign of the gathering 
gloom, BASF has cut back! by 
almost 10 per cent its capital 
spending budget far 1982. 
Admittedly, this should be 
financed broadly from cash flow 
and BASF can even point to a 


'the Trident, gamble has paid 
off handsomely, although the jitU* 
company has just- missed the ■ 
i jackpot When the Indepen- . 
dent Broadcasting Authority 
ordered divestiture of television ! 
interests, the -ordinary shares 
were standing . at 47p. Before 
the Playboy deal was announced 
they were 51p, and yesterday, 
after' Trident succeeded in whi- 
ning permission to operate two . 
casinos— albeit the two smallest 
of the three London Playboy 
establishments — the shares 
ended up at .71p, after jump, 
ing 9p. 

The two casinos and the 
betting chain may produce 
annua] pre-tax^ profits of up to 
£7m, producing a p/e of below 
4, fully-taxed, on the effective 
purchase price of £13m. With 
the remaining TV interests, the 
group could make perhaps film 
in a fUD year, so the overall f 
p/e ; is an undemanding 6J. i 
Moreover, once the reconstiiu- 1 
-ted group has established 1 a \ 
track . record as d “fit and 
proper person," there is always 
the chance that it may one day 
be able to reopen the main 
Playboy, casino. 


it* 




casta! e! 


Guinness Peat 


25 C-’STi 


a-cut r 


Guinness Peat’s new regime 
has evidently come to the con- 
clusion that commodity trading 
is too risky for a group with 
net worth of only £40m. Sn, 
one way or another, Guinness 
Peat - is going to reduce its 
involvement' in the commodities 
game. The possibility of a 
management buy-out, which 
would be partially financed by 
Lord Kissin, has an ironic 
appeal; Lewis and Peat, the 
group’s main commodity trad- 
ing business, was the base from 
which Lord Kissin assembled 
Guinness Peat in 1973. 

Putting the commodity man- 
agers together ’with certain 
investors who were familiar to 
them looked .to the present 
board as if it might be the best - 
way - of scaling down its " "* : 
commitment. Guinness Peat - 

may end up keeping a imnoritf 
interest in the. commodity trad - - 
rag companies, thus deconsoD : , 
dating the traders’ heavy 


! dar:tv 


borrowings from the group 
balance sheet Or it might sell 
some businesses but not others. 
At the end of the day, however, 
the group still needs to find 
itself a role. 






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